The US dollar climbed to new heights against the rupee in the open-market, and hit the 331 level during trading.
On Friday, dealers Business Recorder reached out to said the rupee was being quoted at 331 for selling and 328 for buying purposes for customers in the open-market, up by Rs5 from Thursday’s levels of 326 and 323.
The Exchange Companies Association of Pakistan (ECAP), however, quoted rates at Rs326 and Rs323 during trading on Friday.
Malik Bostan, Chairman ECAP, told Business Recorder that the pressure in the inter-bank is driving up rates in the open-market.
“Rumours circulating in the markets regarding further depreciation of currency are fanning the flames,” he added. “Demand for USD has also risen after import payments have been allowed by the authorities.”
The currency dealer said the government needs to increase the dollar supply to address this issue.
The currency has come under renewed pressure against the US dollar, after the government lifted import restrictions, a key condition of the International Monetary Fund (IMF), leading to pressure.
Moreover, analysts have said that the IMF condition to maintain a currency gap of around 1.25% between the inter-bank and open-market is driving up rates in the latter.
The condition is being exploited by the speculators in the market, said experts.
The gap between rates in the inter-bank and open markets is required to be less than 1.25% under one of the structural benchmarks set by the Washington-based lender.
However, the gap – called the premium by the IMF in its country report on Pakistan published after the Stand-By Arrangement’s approval by the Executive Board – has been widening over the past few weeks.
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