The resuscitated Pakistani rupee continues to strengthen its position against the US dollar as the local unit appreciated massively by Rs2.94 in the interbank trading on Friday. According to money dealers, the US dollar slid even below Rs303 and started exchanging hands at Rs302, shedding its value by Rs2.94. Yesterday, the local currency also soared remarkably by Rs2.04 against the greenback and was closed at Rs304.94. The local currency has started appreciating because of the recent reforms introduced by the State Bank of Pakistan (SBP) in the exchange companies’ sector. The reforms encourage leading banks to establish wholly owned exchange companies to cater to the legitimate foreign exchange needs of the general public. Moreover, the ongoing crackdown against speculators, hoarders, and smugglers has also generated positive vibes and boosted market confidence.

 The government has started a massive crackdown against the currency smugglers. As a result, the rupee has also improved its position in the open market. On Thursday, the rupee climbed up by Rs5 against the US dollar, bringing the greenback down to Rs307 from Rs312. This narrows the gap between the interbank and open market to a mere 0.31%, significantly below the threshold of 1.25% suggested by the International Monetary Fund (IMF). Apart from the official Kerb market, the black market for Hawala/Hundi is also experiencing a significant decline in dollar rates.

 
Credit: Independent News Pakistan (INP)