Bloomberg article, the interim administration’s campaign against the illicit dollar trade is propelling Pakistan’s rupee to achieve the best performance in the world this month.
Pakistan rupee become world’s best currency: According to a Bloomberg report, the Pakistani rupee increased by about 6% in September, a remarkable achievement given that most currencies, notably the South Korean won and the Thai baht, fell against the dollar amid expectations that US interest rates would remain high for some time.
On Thursday, the exchange rate increased 0.1% to Rs287.95 per $1 after falling to a record-low of roughly Rs307 earlier this month.
According to Khurram Schehzad, CEO of Alpha Beta Core Solutions Pvt. Ltd, a financial consulting firm in Karachi, “Many leakages were happening through illegal channels of hawala and hundi trade from the open market,” Khurram Schehzad told Bloomberg. It also mentioned the informal fund-transfer methods known as hawala and hundi in South Asia.
The exporters who are hoarding their export revenues start selling their dollars when the USD rate reverses, according to Schehzad.
The Pakistani government reportedly increased its efforts by pursuing those responsible for the unlawful dollar trade that supported the currency.
To increase transparency and make the retail foreign exchange market easier to oversee, the central bank increased the capital requirements for smaller exchange companies and mandated that large banks establish their own exchange companies.