Islamabad, 29 September, 2023(GNP): In a remarkable turn of events, the Pakistani currency is on track to be the best-performing currency worldwide this month.
The rupee has surged nearly 6% in September, contrasting with the decline of many other currencies like the Thai baht and South Korean won against the US dollar due to expectations of prolonged US interest rate hikes.
The rupee’s value reached Rs287.95 per dollar on Thursday, rebounding from its record low of approximately Rs307 earlier this month.
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The improvement is attributed to government efforts to crack down on the illegal dollar trade, particularly through hawala and hundi channels, which are informal fund transfer systems common in South Asia.
As the dollar rate reverses, individuals holding dollars, including hoarders and exporters with export proceeds, have started selling their dollars, contributing to the rupee’s recovery.
The Pakistani government has intensified its actions against those involved in illegal dollar trading. Additionally, the central bank has raised capital requirements for smaller exchange companies and mandated large banks to establish their exchange companies, promoting transparency and monitoring in the retail foreign exchange market.
