Karachi September 7 2022: Pakistan Rupee depreciates in interbank for the fourth consecutive day to trade at 223.48 against dollar as demand for imports of food items increases due to floods.
Pakistan Rupee depreciates 2.06 in interbank to trade at 223.48 against the dollar at PST 12:10. In open market dollar is up 50 paisa to trade at 234 at PST 12:10.
Recent floods have brought unprecedented crop damage. As a result, the prices of onion and tomatoe have sky-rocketed in the local markets. In order to alleviate the sufferings of the people due to abnormal price hike, the Prime Minister of Pakistan ordered urgent relief measures to ensure an uninterrupted supply of onion and tomatoe in the local markets. Elimination of all taxes and duties in procuring the two vegetables by import will help reduce their prices.
As the import of vegetable increases the gap between Interbank and Open Market exchange rates widen to unprecedented levels for Rupee against the Dollar in forex market.
“Credit cards and imports of onions and tomatoes from Iran and Afghanistan increased demand for dollars” says Malik Bostan President Forex Association of Pakistan.
He added, “The rate of LCs in interbank is something and the dollar rate of payment of credit cards is something else.”
SBP has decided that effective September 7, 2022, Exchange Companies shall seek prior approval from SBP for such export of USD currency notes and the Intended date should not be beyond two days from the date of request submission.
The U.S. dollar index , which measures the greenback against six major peers, hit a fresh 20-year high of 110.69.
