Dollar Slides Below Psychological Barrier of 160 Against PKR
Expert terms revised policies followed by other initiatives as reason behind rupee surge
Business Desk: Pakistani Rupee continued its winning streak against the US Dollar in the interbank market, as PKR gained 22 paisa on Wednesday to push the greenback below the psychological level of Rs 160. Currently, the US dollar in the interbank is being sold at Rs159.75.
It may be noted that the last time dollar stood at similar levels was earlier this year on May 5, 2020, when it was changing hands at Rs159.65 in the interbank market.
The Dollar hit a historic high of Rs 168.43 on August 26, 2020. Since then, it has gone down by Rs 8.68.
A drop in the dollar reduces pressure on external debts by Rs 860 billion.
Exchange Companies Association of Pakistan (ECAP) General Secretary Zafar Paracha told News360 that the government’s measures for bringing foreign remittances through proper banking channels were a major reason behind the slump in dollar rates.
He added that the Roshan Digital Account initiative has created ease for Pakistanis living abroad and relaxing conditions for depositing remittances have resulted in strengthening rupee value against the dollar.
Further, Paracha said that foreign investments were also pouring in due to lucrative profits, which ‘nowhere exist in the world’, by the government against investments in various securities.
A decrease in imports’ volume and a simultaneous increase in exports have also resulted in taking the dollar exchange rate down, he added.
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