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The US dollar’s ascent against the Pakistani rupee persists, reaching new heights in the open market. During Monday’s trading, the dollar was quoted at 334.5 for selling and 331.5 for buying, marking an increase of Rs3.5 from the previous trading session’s levels of 331 and 328, according to dealers reached by Business Recorder.
However, the Exchange Companies Association of Pakistan (ECAP) reported slightly lower rates, quoting the dollar at Rs329 for selling and Rs326 for buying during trading.
In the inter-bank market, the rupee’s value remained above 305 against the US dollar.
This surge in the US dollar’s value, particularly in the open market, follows the government’s decision to lift import restrictions, a crucial condition set by the International Monetary Fund (IMF).
Economic analysts are urging authorities to explore avenues to attract dollar inflows, as the depletion of reserves is undermining confidence in the local currency. Pakistan’s central bank currently holds foreign exchange reserves of approximately $7.85 billion, according to recent data.
Some experts have noted that the IMF’s condition to maintain a currency gap of about 1.25% between the inter-bank and open-market rates is contributing to the rising rates in the latter. This condition, designed to prevent large discrepancies, is being exploited by speculators in the market.
The gap, which the IMF refers to as the premium, has been widening over recent weeks, surpassing the 1.25% benchmark set by the lender for Pakistan, as highlighted in the IMF’s country report on Pakistan published after the approval of the Stand-By Arrangement.
