KARACHI: Rupee plunged by over Rs 18.98 against dollar in interbank ahead of central bank’s monetary policy review and amid concerns over stalled International Monetary Fund (IMF) deal. Rupee slumped by 6.66 percent to close at 285.09 against dollar as per State Bank of Pakistan, down from yesterday’s close of Rs 266.11. ECAP General Secretary Zafar Paracha said main concern in market was delay in agreement with IMF, however, lender’s condition to peg currency rate with that of grey market also referred to as Peshawar market had triggered uncertainty.

Paracha said, current rate was too high and shouldn’t have risen that much. He added that in grey market, greenback was trading at Rs 290 day ago. Meanwhile, currency market expert Adnan Asghar said currency had been sliding after delays in deal between Pakistan and IMF. He said country was “Nearing default situation” owing to this delay. “Uncertain political situation remained another factor behind rupee’s depreciation,” he added.

“Lender is demanding for placement of market-based exchange rate equivalent to level of higher side prevalent in bordering areas adjacent to Afghanistan,” report said. IMF has shown its uneasiness over different rates in interbank market and dollar rate offered in “Peshawar market” as traditionally there was an incentive of Rs 20 against dollar.  Incidents where Afghan businessmen bought dollars from Peshawar by paying Rs 20 extra against prevalent rate of interbank market cannot be replicated for whole of Pakistan, an official told.

Published in The Daily National Courier, March, 03 2023

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