The local currency suffered a heavy blow in the interbank market during intraday trading on Thursday,dropping more than 24 rupees per day after unofficial caps were lifted in the open market.
The local currency was trading at Rs. 255 against the dollar in intraday trading.This is the lowest level the rupee has fallen against the dollar since reaching 239.94 rupees in the interbank market on 28 July 2022.
Meanwhile,data released by the Association of Stock Exchanges of Pakistan (ECAP) shows the dollar is selling at $255 on the open market after gaining 12 rupees.
“The SBP seems to be adjusting its exchange rate to the market rate.
PTI leader Asad Umar accused Finance Minister Ishak Dar of his “false ego”, which he said had severely damaged the national economy. “People who claimed to have pushed the dollar below 200 pushed the dollar up to 240,” he said.
“Billions of dollars lost in remittances and exports, thousands of businesses destroyed and millions of people out of work due to false egos. Who is to blame for this catastrophe?
Meanwhile, speaking to Geo, Dr. Khaqan Hassan Najeeb,a former adviser to the Ministry of Finance Television, said it was the “right move” to let the market determine the value of the local currency. He said “the move was necessitated by a severe dollar liquidity squeeze, tight reserves and the need for Pakistan to move forward with the IMF.”
The economist added In this regime, trade deficits,supply and demand factors,and economic fundamentals have a significant impact on currency fluctuations.
