On Wednesday, the rupee continued to decline against the dollar and hit a new interbank low of Rs236.
At yesterday’s closing of Rs232.93 at 11:30am, the local currency decreased by Rs3.77 to Rs236.70, according the Forex Association of Pakistan (FAP).
FAP chairman Malik Bostan emphasised the need for more dollar inflows since doing so would stabilise the currency.
He suggested that the central bank ought to take harsh action against exporters who fail to return their profits to the nation on schedule.He added that using local currency would still save $2 billion in foreign exchange and should be used it for trade with Afghanistan.
Bostan remarked, “Pakistan’s inflows at the moment are brief.” Transferring $2 billion to Afghanistan [for imports] in such circumstances is making our problems worse, he continued.
According to Komal Mansoor, head of strategy at Tresmark, pressure on the rupee will continue as long as there is a dearth of dollars.
She added that “in a desperate move” banks were willing to buy dollars from exporters at a rate even higher than the interbank rate because “Exchange companies are unloading their inventory and selling dollars to the bank to bridge some gap but demand vastly outweighs supply.Saad Bin Naseer, the director of Mettis Global, was optimistic that the pressure on the currency would subside in the coming sessions prior to inflows from friendly nations and the International Monetary Fund (IMF).
He noted that “demand from importers has drastically decreased during July.”
“As of July 25 only $3.7 billion worth of imports had been made, according to the finance minister. This will greatly reduce demand-side pressures and may even maintain a surplus in the current account balance for July “Added he.
Due to increased demand from importers, the dollar has come under fresh pressure. The “import mafia,” according to bankers, has effectively drowned the country’s economy and continues to demand that additional imports be permitted even if the nation is already on the verge of default.
