Washington DC July 19 2023: The average premium between the interbank and open market rate will be no more than 1.25 percent during any consecutive 5 business day period, states IMF staff report.
Pakistan has already withdraw circular on prioritization in providing FX for certain types of imports introduced in December 2022, with the purpose of ensuring full market determination of the exchange rate.
“For the first time, IMF has put a condition on PKR USD parity in the open market (exchange companies) to manage currency in line with market forces. IMF Pakistan country report says average premium between interbank & open market rate will be no more than 1.25% (Rs4 to 4.2) during any consecutive 5 business day period” says Muhammad Sohail Chief Executive Officer at Topline Securities.
Going forward, Pakistan agreed to refrain from formal and informal guidance on the exchange rates of FX intermediaries and, after eliminating existing exchange restrictions and the multiple currency practice (MCP), will maintain a framework free of restrictions on payments and transfers for current international transactions and MCPs, and, by allowing no hindrance to the market determination of the exchange rate, ensure that no abnormal premium emerges in between the rate in any of the three FX markets— interbank, open, and informal.
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