Pakistani currency dropped over 1%, or Rs3, to Rs295 against the US dollar in the open market on Monday, which came just days ahead of the formation of a caretaker government.
Talking to The Express Tribune, Exchange Companies Association of Pakistan General Secretary Zafar Paracha revealed that there were almost no sellers of foreign currency at retail counters, “leaving the open market dry.”
“There was almost zero supply of foreign currencies…as speculations about another round of rupee devaluation under the caretaker setup gripped the market,” Paracha said.
The notable drop in the open currency market came partially in line with the return of downward trend in the inter-bank market, he pointed out.
According to the SBP, the currency dropped 0.16%, or Rs0.46, to Rs287.43 against the greenback in the inter-bank market, ending a two-day winning streak.
With the fresh depreciation, the difference between rupee-dollar exchange rates in the two markets widened to Rs7.57, which was almost double the spread of 1.25% recommended by the IMF.
Published in The Express Tribune, August 8th, 2023.
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