Rupee continues downward slide
Strengthening of the US dollar against other global currencies like the euro and pound carries a potential threat to the value of Pakistani rupee. photo: file
Pakistani currency continued its slide for the fifth successive working day as it dropped by 0.37% (or Rs0.82) to close at Rs219.71 against the US dollar in the interbank market on Tuesday.
The domestic currency had closed at Rs218.89 against the greenback on Monday, according to the State Bank of Pakistan (SBP).
With the latest decrease, the currency has cumulatively depreciated by 0.88% (or Rs1.92) in the past five working days to Rs219.71 as compared to Rs217.79 on Tuesday (October 11).
The reactivation of illegal hawala-hundi (reference) operators on the borders with a couple of neighbouring countries and a drop in export earnings have led to the continuous fall in value of the rupee at the interbank market. Reports suggest that the US dollar is being sold at Rs236 in the black market at border areas as compared to Rs217.79 in the interbank market and Rs226 in Karachi’s open market.
The wide gap between the dollar value in the black market and the interbank market is diverting a portion of the foreign currencies from the legal markets to illegal markets.
Published in The Express Tribune, October 19th, 2022.
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