US dollar soars to over Rs225 against Pakistani rupee

By: News Desk
Published: 10:58 AM, 8 Sep, 2022
The US dollar did not budge from demonstrating its immense prowess on Thursday also as it went up by Rs1.58 against the toothless Pakistani rupee
Caption: Representational image.
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The US dollar did not budge from demonstrating its immense prowess on Thursday also as it went up by Rs2.00 against the toothless Pakistani rupee, reported 24NewsHD TV channel.

As the trading concluded in the interbank, the forex dealers saw the greenback continued its upward journey went up to Rs225.42 up by Rs2.00.

On Wednesday, the US dollar also appreciated by Rs2 and closed the day at Rs223.42.

According to experts, the government is responsible for the dearth of dollars in the open market which is causing rupee’s slump. They say that the government has made it mandatory to declare cash and other valuables at arrivals. This move didn’t auger well and the Pakistanis are avoiding bringing foreign currencies. 

Besides this, a grey market has also emerged in the open market where rate of dollar is up as compared to the interbank rate. The grey market is evaporating dollar making it expensive. 

The positive vibes which the market was expecting earlier from the arrival of $1.16 billion IMF tranche could not do the wonders as, according to experts, the challenge of huge debt servicing in next few months still looms wiping out the spirit of rupee resilience. 

In order to give boost to gutless rupee, the State Bank of Pakistan on Tuesday imposed a ban on the export of dollar after it has become expensive in the open market.

The SBP has imposed a strict condition on the export of dollar.

As per the decision, all exchange companies will have to seek permission from the SBP before exporting dollar from September 07, 2022.

The SBP has also informed the heads of all exchange companies about the ban on export of dollar.

It is worth mentioning that the SBP allowed export of dollar last month on August 15. 

Reporter Ashraf Khan