The Pakistani rupee maintained its momentum against the US dollar in the open-market on Wednesday as the gap with the inter-bank market continued to stay narrow and within the prescribed limit given by the International Monetary Fund (IMF).
Currency dealers Business Recorder reached out to said the rupee was quoted at 285 for selling and 282 for buying purposes for customers.
At the end of trading on Wednesday, the currency closed at the same rates, according to data provided by the Exchange Companies Association of Pakistan (ECAP).
In the inter-bank, the rupee gained for the 20th successive session, settling at 284.68 against the greenback.
The ongoing appreciation comes after the State Bank of Pakistan (SBP) ramped up efforts to clip the wings of the high-flying dollar and announced a list of “structural reforms” last month, targeting the Exchange Companies (ECs).
Apart from the central bank measures, the caretaker setup also announced taking administrative steps to tighten the screws around smuggling and hoarding of currency and as a result, countrywide raids were reported with scores of illegal currency exchanges being shut down and foreign currency worth millions confiscated.
However, the increase, criticised by some as unsustainable since it comes on the back of administrative measures, is also seen as a positive as it curbs ‘speculation’ in the currency market. It also means the gap between the inter-bank and open markets has narrowed to negligible levels, meeting the structural benchmark set by the IMF.
The development comes at an apt time for Pakistan which is set to enter the next review of its Stand-By Arrangement with the IMF.
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