A day after registering its weakest level, Pakistan's rupee recovered against the US dollar in the inter-bank market on Thursday.
As per the State Bank of Pakistan (SBP), the PKR closed at 170.87 against the USD, a day-on-day appreciation of 9 paisas or 0.05%. The PKR on Wednesday dropped to 170.96 against the greenback at the inter-bank, the lowest level in its history.
The gain, albeit marginal, comes a day after the SBP announced new rules to curb the dollar outflows to Afghanistan as the Pakistani currency continues to remain under pressure.
In a statement, the SBP said, “In order to enhance transparency in the foreign currency transactions by exchange companies and to curb the undesirable outflow of cash foreign currency, the SBP has introduced following regulatory measures: Persons traveling to Afghanistan will be allowed to carry only $1,000/- per person per visit with a maximum annual limit of $6,000; Exchange companies will be required to conduct biometric verification for all foreign currency sale transactions equivalent to $500/- and above and outward remittances. This requirement will be applicable with effect from October 22, 2021.
Furthermore, Exchange Companies will sell the cash foreign currency and make outward remittances, equivalent to $10,000/- and above, against receipt of funds through cheque or banking channels only."
Pakistan's rupee hits new low, closes near 171
Former head of treasury Chase Manhattan Bank Asad Rizvi said that the central bank's latest action might not be enough, and it may need to resort to taking fiscal measures now.
“The SBP, after imposing restrictions on car financing and then 100% cash margin on 114 items, has amended Exchange Companies Rules to have a better grip on the outflow of currencies. This may not be enough. It is time to take fiscal measures before all monetary tools get exhausted,” tweeted Rizvi.
Inter-bank market rates for dollar on Thursday
BID Rs 170.65
OFFER Rs 170.75
Open-market movement
In the open market, the PKR gained 70 paisas for buying and 90 paisas for selling against USD, closing at 171 and 171.30, respectively.
Against Euro, the PKR gained 50 paisas for both buying and selling, closing at 197.50 and 199, respectively.
Against UAE Dirham, the PKR gained 30 paisas for buying and 20 paisas for selling, closing at 47.50 and 47.80, respectively.
Against Saudi Riyal, the PKR gained 20 paisas for buying and 10 paisas for selling, closing at 45.20 and 45.50, respectively.
Open-market rates for dollar on Thursday
BID Rs 171
OFFER Rs 171.30
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