KARACHI
The Pakistani rupee held ground against the US dollar in the interbank market on Monday and remained unchanged.
According to the State Bank of Pakistan, the dollar opened at Rs178.04 in the interbank market and closed at the same rate. Within the open market, the rupee was traded at 180/181 per dollar.
This is the lowest ever rate of the local unit against the greenback. The rupee’s depreciation during the ongoing fiscal year 2021-22 has been Rs20.62 and Rs17.89 in the current year 2021.
The central bank on Monday took more measures to enhance documentation and transparency in foreign exchange transactions through exchange companies.
In order to enhance documentation and transparency and to further strengthen the foreign exchange regulatory regime, the State Bank of Pakistan has amended the regulations governing sale of foreign exchange to individuals by exchange companies.
The central bank said that this step which is in continuation of other measures being taken by SBP, is primarily to discourage speculative buying and selling of foreign exchange from the exchange companies without affecting the ability of the market to serve the genuine needs of the public.
Earlier during the current month, the dollar hit then highest ever levels of Rs177.98 on December 15, Rs177.89 on December 13, Rs177.71 on December 10, Rs177.61 on December 9, Rs177.43 on December 8, Rs176.79 on December 7, Rs176.77 on December 3, and Rs176.42 on December 02.
Pressure has mounted on the rupee in recent weeks, with everything now hinging on whether the government strikes a deal with International Monetary Fund (IMF) over the release of new funds. To land the deal, a mini-budget is due in the next few days, which will presumably pave the way for an IMF agreement and the release of funds. It is expected to give the rupee some respite.
Apart from economic challenges, the geopolitical situation with Afghanistan has also weighed on the currency; however, there is optimism the current adjustments will finally pave the way for a broader recovery for the economy and the currency.
