The Pakistani rupee started Wednesday in negative territory and ended the day in negative zone as it lost another 22 paisas against the US dollar in the interbank market, reported 24NewsHD TV channel.

This was the seventh straight loss of the local currency against the greenback.

According to forex dealers, the US dollar appreciated by 22 paisas and ended the day at Rs226.37.

https://twitter.com/StateBank_Pak/status/1608070624588480514

On Tuesday, the rupee ended the day with a loss of 33 paisas against the US dollar, falling by 0.15% in the inter-bank market and concluded at Rs226.15.

https://twitter.com/StateBank_Pak/status/1607704916184686594

Market experts and currency dealers have expressed alarm over the rise in smuggling of US dollars to neighbouring countries, which is also driving the grey market.

Forex Association of Pakistan President Malik Muhammad Bostan had claimed the other day that the country was hemorrhaging dollars owing to smuggling and its trade with Afghanistan. “We are losing close to $2 billion to Afghanistan on a monthly basis. The government must ban trading in dollars with the neighbour. It should be done in local currency or barter trade,” said Bostan.

He revealed “Pakistan imports coal from Afghanistan, but the payments are being made in dollars.”

Bostan said Pakistan’s domestic market is full of buyers with not nearly enough foreign currency to meet demand. “A very small number of people are currently selling their dollars in the open market. These are people unaware of the black market. Otherwise they, too, would go that way, I feel,” he added.

 
Reporter Ashraf Khan