The Pakistani rupee slightly declined versus the US dollar.
rupee slips against dollar: Currency dealers contacted by Business Recorder reported that they quoted the rupee at 296.9 for selling purposes and 294 for buying purposes for consumers in the open market, both of which were about Re1 lower than Tuesday’s values.
Information from the Exchange Companies Association of Pakistan (ECAP) indicated that the rupee had a value of 296 for selling and 293 for purchasing at the close of trading on Tuesday.
The premium, one of the structural benchmarks of the International Monetary Fund (IMF) programme, has decreased since rates in the interbank and open markets are now decisively close to one another.
The Indian rupee was trading at around 293 against the US dollar in the interbank market.
Due to a nationwide crackdown by law enforcement agencies on illegal exchanges and currency smugglers, the rupee has recently gained momentum.
The State Bank of Pakistan (SBP) also announced structural reforms, instructing commercial banks to establish their own ECs as fully-owned subsidiaries, in addition to the government’s administrative steps. Three banks have announced the creation of the ECs thus far.
Malik Muhammad Bostan, Chairman of the Exchange Companies Association of Pakistan (ECAP), expressed alarm over allegations that the government was considering shuttering exchange companies on Tuesday, claiming that these reports have sparked fear in the exchange industry.
“He stated that, in this regard, the government and higher authorities were contacted on Tuesday, and they categorically rejected the allegations of ECs being involved in the black marketing of the dollar.”
He claimed that it has also demonstrated that ECs play no part in the volatility of the currency market and that they fully support the government’s approach and the enforcement of actions against illicit currency dealers who engage in the black selling of dollars.