Bloomberg highlighted an incredible trajectory for the Pakistani rupee, projecting it as the month’s global top performer in September. This ascent in value comes as the interim government rigorously counters illegal dollar transactions.
In September 2023, the local currency appreciated by 6% against the dollar. This starkly contrasts the Thai baht and South Korean won, both of which witnessed depreciations against the US currency.
Global speculation hints at sustained higher US interest rates, weakening many major currencies against the dollar. However, the rupee had made notable strides by Thursday, settling at 287.95 against the dollar. This upliftment followed its earlier slump to a record low, touching approximately 307 earlier in the month. Notably, the Pakistani currency market will be inactive during the Eid Miladun Nabi holiday on Friday.
Combating Illegal Currency Trades
The interim government has taken steps to control leakages via illicit hawala and hundi trade routes in the open market. The interim administration has ramped up its measures, and the focus has been clamping down on individuals and entities involved in unauthorized dollar trade practices. As part of this initiative, the Federal Investigation Agency led nationwide raids. In addition, undercover security personnel have been strategically positioned at currency exchange points to oversee and regulate dollar transactions.
Measures for Sustainable Stability
Caretaker Prime Minister Anwaar-ul-Haq Kakar commented on this currency rise, emphasizing that such gains induce a positive sentiment and pave the way for enhanced economic stability.
Complementing these efforts, the State Bank of Pakistan has implemented stricter regulatory norms. There’s a heightened capital requisite for smaller currency exchange entities. Simultaneously, the bank has instructed major institutions to inaugurate their dedicated currency exchange outfits. The underlying aim remains to bring transparency and systematic monitoring to the retail foreign exchange marketplace.
