KARACHI: The dollar price slightly appreciated in the inter-bank market on Wednesday, indicating that the exchange rate can find a sustainable level around Rs270, said currency dealers.
The State Bank of Pakistan reported the dollar’s closing price at Rs268.83 versus Rs267.89 a day earlier. The greenback gained Rs0.94. They said the exchange rate seems to have reached a sustainable level but the market lacks clarity given that foreign exchange reserves have dropped to a critically low level.
Currency dealers said exporters are still waiting for further devaluation and have yet to sell their holdings at a large scale. According to one banker, some exporters have sold a limited amount of dollars just to pay their dues domestically and release salaries to their employees.
They said the sustainability of the exchange rate depends on the outcome of the government’s talks with the IMF. They believed the government has exhausted all options to bring dollars into the country and the IMF is now the only option for keeping the economy afloat.
Exchange companies reported that the dollar was available at a price of Rs275 against the rate of Rs276.50 a day ago, showing a decline of Rs1.50. They said they were sure about the size of the grey market going down but buying from this particular segment was still going on.
Bankers said opening LCs is still challenging. Importers claim that some banks are minting money out of this difficult situation. One importer said banks are opening LCs either under some influence or at a higher than official rate of dollars.
Published in Dawn, February 2nd, 2023
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