US dollar again thrashes Pakistani rupee to historic low in interbank

The US dollar slid a bit but came back strongly in no time against the Pakistani rupee in the interbank market on Tuesday, reported 24NewsHD TV channel.

According to the State Bank of Pakistan, the erstwhile battered Pakistani rupee was again bulldozed by the greenback as the local currency depreciated by Rs1.05 in the interbank market, taking the US dollar to a new record high of Rs303.05 at the close of business.

Interbank closing #ExchangeRate for todayhttps://t.co/cRgkXcD29J#SBPExchangeRate pic.twitter.com/eU0JGVGMSF

— SBP (@StateBank_Pak) August 29, 2023

Yesterday, the Pakistani rupee registered a depreciation of 0.33 percent against the US dollar which was closed at Rs302.

https://twitter.com/StateBank_Pak/status/1696114150412574902

However, there is a wide difference between the rates of USD in the interbank and open market as the local unit is being exchanged at Rs314/319 per USD in the open market.

The almost 5.6% differential in the rates of interbank and open market exceeds the 1.25% threshold determined by the International Monetary Fund.

There is a dearth of the US dollar in the interbank but it could be available in the open market at a much higher rate.

The government must intervene to lower the differential as it throws up a challenge to the Standby Arrangement reached between the Government of Pakistan and the IMF.

 

Reporter Ashraf Khan