The rupee depreciated against the dollar on Wednesday after the Exchange Companies Association of Pakistan (Ecap) removed an unofficial cap on the exchange rate. According to a notice issued by Ecap Chairman Malik Bostan’s office, the USD was being traded at Rs243 in the open market at 11am, falling 0.93 percent from yesterday’s close of 240.75. It was being traded at Rs231.5 in the interbank market at the same time. Separately, Ecap General Secretary Zafar Paracha said a committee of exchange companies would decide the USD-PKR rate in the open market in a meeting later today.

He said talks between State Bank of Pakistan (SBP) Deputy Governor Inayat Hussain and Ecap representatives were successful. “The State Bank accepted all our demands including removing the cap.” Paracha said the SBP further directed commercial banks to supply dollars to exchange companies. He vowed to bring the USD-PKR exchange rate in the open market to the ‘actual’ rate so the grey market could be abolished.

Credit: Independent News Pakistan-INP