KARACHI: The Pakistani rupee crossed the 300 mark as it traded at an all-time low of 300.37 against the US dollar in the interbank market, data from the Exchange Companies Association of Pakistan (ECAP) showed on Thursday.
Pressure on the local unit has increased as demand for the greenback has increased following the easing of import restrictions and heightened risks associated with financing the country’s current account deficit.
On Wednesday, the currency fell to 299.64 against the USD, down 0.21% from Tuesday’s close of 299.01.
Dr. Khaqan Najeeb, an economic expert and former adviser to the finance minister, told JEE News that the pressure to release already standing containers and the decline in exports and remittances is leading to lack of dollar liquidity in the economy.
He said the interbank market is also trying to catch up with the curb market as Pakistan has agreed on a structural benchmark with the International Monetary Fund to keep both markets at a spread that averages over 1.25 percent. can not be. five days.
“Even in open markets supply is limited but demand remains high as the portion of imports not met by the interbank market is also taken care of in the curb market and due to dollarization as many feel that Dollar is an expensive. Store price and best to keep.”
The expert also pointed out that monetary policy has lagged behind in influencing even those who want to keep the rupee.
He added that funds at the interbank level have to be increased which is the best way to ensure the stability of the Pakistani rupee.
“Furthermore, confidence in the economic plan and future planned funds will also help as the next tranche may not happen in the coming months,” he said.
