During early trade on Thursday, the Pakistani rupee for the first time in its history crossed the Rs. 300 level in relation to the USD, as the local currency continues to depreciate due to market pressure and the International Monetary Fund (IMF) criteria.
USD Current Rate in the Interbank
The rupee once more came under pressure as the day’s interbank trade began, and at around 10:30 a.m., it fell to the Rs. 300.25 mark against the USD.
It indicates that the rupee has lost 61 paisa, or Rs. 0.61against the previous day’s closing value of Rs. 299.64, thus far during the session.
The rupee had already dropped to Rs. 299.01 in interbank trading earlier on Tuesday, establishing a new record.
Previously, on May 11, this year, the official exchange rate for the USD was Rs. 298.93.
The IMF condition prohibiting government intervention in the market to set currency rates is what has caused the unrestrained decline in the value of the rupee.
The $3 billion IMF accord requires Pakistan to maintain a 1.25 percent maximum spread between the interbank and open market dollar exchange rates.
Therefore, as those who support a strong currency warned, the rupee is being dragged down the hill by the drop in the open market based on demand.
IMF Loan Effects
However, the detrimental effects of IMF policies are not only to blame for catastrophic long-term effects, but they have also begun to have the reverse effect.
However, reduced demand for electricity (as well as reduced demand for gasoline and diesel) is one effect of the nation’s economy being hit by record-high inflation, interest rates, and energy prices.
The Power Division has changed its mind about raising the price of energy by 5.40 rupees per unit and now suggested a smaller increase of 3.55 rupees as part of the quarterly tariff adjustment (QTA).
To read our blog on “Pak Rupee gains against US dollar and other currencies,” click here.
