KARACHI: The market-based free exchange rate has failed to stop the bullish US dollar which crushed the local currency to its lowest closing at Rs172.78 on Monday.

The State Bank of Pakistan (SBP) — which has been promoting the market-based free exchange rate — is unable to stop this free-fall which pushed up the prices of imported products and raw materials and is ultimately hitting the entire economy.

A banker said there was no influence from the SBP to stop this free fall of the Pak rupee which fell as low as Rs173.20 during the session but slightly gained to stay at Rs172.78 by the time of closing of the inter-bank market.

“When petroleum prices were increased it was taken as the output of the negotiation with the International Monetary Fund (IMF). Now the steep fall of the rupee against the dollar is also being considered as the reason for the IMF’s condition,” said a senior banker dealing with the currency market.

A high-level Pakistani financial team is in Washington to negotiate with the IMF for loans.

Since May 2021, the dollar has appreciated by 13.4 per cent against the Pak rupee.

Published in Dawn, October 19th, 2021

Opinion

Editorial

24 Jan, 2022

Anti-extremism policy

HAD there been more far-sighted policymaking on the part of the state and an understanding of how religious ...
Government’s silence
Updated 24 Jan, 2022

Government’s silence

A MAJOR trial is underway in London during which Pakistan has repeatedly been mentioned as the place where payment...
24 Jan, 2022

Cutting mangroves

FOR Karachi, the mangrove cover along its coastline is a thin line of defence against potential oceanic and climatic...
Yemen atrocity
Updated 23 Jan, 2022

Yemen atrocity

The sooner this war is ended, the better, to halt the suffering of Yemen's people and ensure security of all regional states.
23 Jan, 2022

Regressive taxation

THE FBR appears to have kicked up a new and unnecessary controversy by serving notices on currency dealers to ...
23 Jan, 2022

Medico-legal flaws

ON Friday, a 13-page verdict authored by Justice Ali Zia Bajwa of the Lahore High Court revealed a shocking fact...