The Pakistani rupee has been gaining strength against the US dollar in the interbank market due to a crackdown on hoarding and illegal outflows of the greenback. The rupee closed at Rs301.09 after gaining Rs1.79 compared to the previous close. The decline in the dollar’s value is attributed to the crackdown initiated by the caretaker government to prevent cross-border smuggling. The government is offering rewards for informants who provide information about smuggling and hoarding, including of dollars. The government’s initiative aligns with the Chief of Army Staff’s assurance of promoting transparency in dollar exchange rates. The State Bank of Pakistan has also increased supervision of the foreign exchange market and ordered banks to set up separate entities for forex transactions. Structural reforms in the exchange companies’ sector are planned to improve services and bring transparency. These measures have led to an excess supply of dollars in the market. Increased vigilance of the Afghan transit trade has also contributed to the rupee’s rise. Experts believe that if the government continues these measures, further improvement can be seen. The market expects the rupee to consolidate around the 295 level in the near term, depending on the upcoming monetary policy committee and administrative supervision. The rupee’s rise is attributed to the government’s actions, with praise given to the army chief for his role.
>Source link>
>>Join our Facebook Group be part of community. <<