Karachi September 13 2022: Pakistan Rupee depreciates in interbank for the eight consecutive day to hit one month low and trade nears 231 against dollar as dollar shortages persist in the market to import goods for flood relief and vegetables to meet shortages caused by devastating floods amid FBR decision to declare dollars on inbound flights.
Pakistan’s Finance Minister Miftah Ismail has stated while speaking to business community that there is still much pressure on the dollar which will not allow us for opening of LCs for imports.
Pakistan Rupee depreciates 1.18 or 0.5 percent in interbank to trade at 231.00 against the dollar at PST 10:30. In open market dollar is trading at 236 at PST 10:30, according to Forex Association of Pakistan.
“A large part of foreign currency supplies is going to the black market as illegal currency dealers as smuggler of goods have become active again across the border with Afghanistan and Iran” says Zafar Paracha General Secretary of Exchange Companies Association of Pakistan in an interview to local newspaper.
“Hawala/ Hundi operators are paying Rs240 for each US dollar in Karachi, Rs245 in Peshawar and Rs248 in Afghanistan,” he said.
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 nursed losses on Tuesday ahead of U.S. inflation data that could show some signs of softening, while the euro found its footing above parity on hawkish comments from policymakers that rates would need to increase further. The dollar index stood firm at 108.2, after falling 0.7% overnight, the largest daily decline since August, reported by Reuters.
