Karachi September 9 2022: Pakistan Rupee depreciates in interbank for the sixth consecutive day to trade near 230 against dollar on FBR decision to declare dollars on inbound flights and higher demand for vegetables due to torrential rains and floods creates dollar shortages.
Pakistan Rupee depreciates 4.08 in interbank to trade at 229.5 against the dollar at PST 11:25. In open market dollar is up 50 paisa to trade at 235 at PST 11:25.
On August 16 2022, CAA order required all incoming international flights to ensure that all passengers disclose their foreign currency possessions through a pro forma and that airlines submit all these declarations to the CAA. State Bank of Pakistan Deputy Governor Dr Inayat Hussain said before the senate that this was one of the reasons for recent pressure on the rupee.
Recent floods have brought unprecedented crop damage. As a result, the prices of onion and tomatoes 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.
To control exchange rate in Open Market 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 dollar recoiled from recent peaks in Asia on Friday as a hawkish rate hike from the European Central Bank lifted the euro and investors looked to U.S. inflation data early next week. The U.S. dollar index last traded 0.66% lower at 108.88, after scaling a 20-year high of 110.79 earlier in the week. It's heading for a weekly drop of 0.7%, reported by Reuters.