Due to the ongoing crackdown on the dollar mafia by the security exchange, Pakistan’s rupee has appreciated by over 6% against the US dollar. The gains achieved so far have nearly offset all the rupee’s losses in August, effectively making it the top-performing currency globally for the month.
The rupee had reached a record low of 307.1 against the dollar in September, but it has seen a rapid recovery since the country’s financial regulator and security agencies initiated actions the following day to suppress illicit market activities. In the interbank market, the Pakistani rupee concluded 0.33% higher, reaching 282.6 per dollar on Thursday.
It is widely anticipated that continued regulatory efforts can further bolster the rupee and diminish the prevailing dollarization sentiment that had pushed the currency to the brink of crisis. The crackdown on operators in the black market resulted in the influx of millions of dollars back into Pakistan’s official interbank and open markets, as reported by dealers.
The appreciation of the rupee will give a sigh of relief to the masses from increasing inflation and fuel prices. Selling of the US currency is likely as hoarders and speculators become discouraged with the rupee’s upward trend. Authorities should prioritize market forces and adhere strictly to the agreed-upon exchange rate parity between the open market and the official rate as per the agreement with the IMF.
