Rupee takes huge jump of Rs19 to 295 viz dollar

KARACHI: Pakistani rupee made a strong comeback against the US dollar in the open-market on Thursday, showing a significant appreciation from 314 to 295 against the greenback.
The rupee appreciated in the open market after the State Bank of Pakistan (SBP) allowed credit/debit card payments to be settled through banks. The SBP on Wednesday allowed banks to purchase US dollars from interbank for settlement of card-based cross-border transactions with International Payment Schemes (IPS).
Previously, as per the SBP directives, authorised dealers were allowed to purchase dollars from any exchange company from settlement of card-based cross-border transactions with IPSs such as Visa, MasterCard, etc. This facility is initially being provided for two months.
President of Forex Association of Pakistan, Malik Bostan lauded the central bank’s decision, saying this is the right decision at the right time as it has decreased the pressure on the open market. As a result, the spread between the rates of the interbank and the open market has diminished.
Asad Rizvi, the former Treasury Head at Chase Manhattan Bank stated that the gap between the interbank and open market was temporary and created due to added Afghanistan buying and the annual Islamic pilgrimage Hajj.
He stated that remittance inflow is expected to come into the country due to Eid-Ul-Azha. However, he appreciated the SBP’s decision and said that the date given for this circular is July 31, which is very calculated as the buying from Hajj pilgrims will be completed.
However, currency dealers said that the dollar remains in short supply, adding the customers are not approaching the market to sell their currency. They said the market would soon find its equilibrium. They said that the Saudi Riyal remained unavailable ahead of Hajj requirements.
On the other hand, the Pakistani rupee strengthened by 9 paisas (0.03 percent) against the US dollar in the interbank market on Thursday. The SBP said in a tweet that the dollar opened at Rs285.47 in the interbank market and closed at Rs285.38.
During the current fiscal year 2022-23, Pakistani rupee has lost Rs79.51 against the US dollar in the interbank, while it plummeted by Rs58.95 against the greenback in the current year. – TLTP