KARACHI: Domestic unit took an enormous blow in interbank market during intraday trade as it depreciated by more than Rs 24, day after lifting of unofficial cap in open market. Unit was trading at Rs 255 against dollar during intraday trade.

This is lowest level rupee has fallen against dollar since July 28, 2022, when it touched Rs 239.94 in interbank market.

On other hand, data released by Exchange Companies Association of Pakistan showed that greenback in open market is being sold at 255 after appreciating by Rs 12.

Meanwhile, Pakistan Tehreek-e-Insaf (PTI) leader Asad Umar slammed Finance Minister Ishaq Dar over his “False ego” which, according to him, dealt massive blow to national economy.

“Those, who were claiming to bring down dollar below 200, they have pushed it above 240,” he said.

“Loss of billions of dollars in remittances and exports, thousands of businesses destroyed and millions of people unemployed due to false ego. Who will take responsibility for this disaster?”

Capital market expert Muhammad Saad Ali commenting on developments in financial market said, “SBP is seemingly adjusting exchange rate to market rate-closer to open market.” He added that step comes to address widening difference between official and open market rates and curb flow of dollars through informal market.

Step is vital to ensure resumption of International Monetary Fund’s loan programme, which has pushed Pakistan for market-determined exchange rate, he added.

Meanwhile, Finance Ministry’s former adviser Dr Khaqan Hassan Najeeb said it was “Right move” to let market determine currency’s value. He said step was needed amid “Severe dollar liquidity crunch, scarce reserves, as well as Pakistan’s need for moving ahead with IMF”. Economist explained, “This may help ease supply of dollars in interbank.”

Published in The Daily National Courier, January, 27 2023

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