This encouraging development may be linked to the State Bank of Pakistan’s recent reforms as well as the ongoing campaign against speculators, hoarders, and smugglers. These changes are intended to streamline exchange businesses and encourage top banks to launch their own exchange businesses.
Responding to market expectations of a probable rate rise, the policy rate was maintained at 22% during the most recent Monetary Policy Committee meeting. In addition, the current account deficit for August 2023 was $160 million, down 79.35% from July 2023. Despite the letters of credit’s limits no longer being in place, this improvement took place. Overall, these achievements show attempts to build the economy and stabilize the currency.
In the interbank market session, the Pakistani rupee (PKR) showed signs of strengthening versus the US dollar, finally finishing at PKR 296.849 per USD. The exchange rate fluctuated all day, hitting a high of 297.2 and a low of 297. The dollar was quoted at 296 for purchasing and 300 for selling on the open market, where the exchange rate remained steady.