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Monday, October 3, 2022
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Rupee continues to backtrack against dollar

The rupee continued to fall against the dollar, closing at Rs219.41 after losing 0.47 percent of its value or Rs1.03, as opposed to yesterday’s close of 218.38, according to State Bank of Pakistan (SBP).

The rupee was being traded at Rs228 in the open market during the day, according to Forex Association of Pakistan (FAP).

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Zafar Paracha, secretary general of Exchange Companies Association of Pakistan (ECAP) told local media that the severe shortage of dollars and difference of Rs10 to Rs11 between the interbank and the open market was never seen before.

Economic experts have said that the increasing demand of dollars has been creating the stir, especially by those travelling to the United Arab Emirates (UAE).

Experts have also said that the pressure on the rupee will continue till the International Monetary Fund (IMF) board’s approval of disbursing the $1.17 billion tranche for Pakistan.

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Apart from the IMF tranche release, lifting of ban on the import of luxury items while exports not increasing at the desired pace has also resulted in pressure on the rupee, economists have stated.

The UAE making it mandatory for Pakistani travellers to declare 5,000 dirhams at the airport has also led to increase in demand of dollar and its price in the open market, some experts have argued.

Disagreeing with the view of linking rupee’s fall to travellers buying foreign currency, Paracha said that only two percent people were purchasing foreign currency as required by UAE. He added that 80 percent of people travelling via Dubai had connecting flights and did not need to show the currency whereas 18 percent were permanent residents of UAE and therefore did not require to fulfill that condition as well.

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