ISLAMABAD: The Pakistani rupee witnessed a significant improvement of about Rs 18 during the last two days, as on Wednesday, the local currency was traded in the range of Rs315 to Rs318 against US Dollar.
Market experts are attributing the recent improvement to the recent meeting of the Army Chief with the Business Community, followed by some pledges, including implementing strict policy measures across the board.
Two days back, the local currency was hovering against the greenback in the range of Rs330 to Rs335 in the open market.
Meanwhile, in the interbank, the Pakistani Rupee recorded a gain of Rs 0.12 against the American Dollar to settle at Rs306.98 against its last-day value of Rs 307.10, as reported by the State Bank of Pakistan.
Interbank closing #ExchangeRate for todayhttps://t.co/SytjyekglO#SBPExchangeRate pic.twitter.com/Nxvgd9SQ05
— SBP (@StateBank_Pak) September 6, 2023
Improvement in Pakistani Rupee
Economy experts believe that during the coming few days, the local currency might get some more strength in the open market to settle below the 300 threshold, which would possibly be followed by the interbank at the same pace.
According to recent media reports, authorities in government are flexing muscles for a decisive crackdown against smuggling, hoarding, and other speculative activities to balance the flow of dollars in the country.
Accordingly, customers holding dollars are now selling them in the open market, which would have an optimistic effect on the open market. However, consistent improvement in the interbank would require a flow of dollars into the country.
It is worth mentioning here that as per the IMF (International Monetary Fund), Pakistan has to maintain the exchange rate between the interbank and open market at around 1.25 percent. In addition, after the removal of the ban on all kinds of imports (another condition by the IMF) last month, the country witnessed a shortage of dollars, which led to the devaluation of local currency. However, the recent measures announced by the government may improve the situation to some extent.
