US Dollar touches unprecedented level in Pakistan, what's behind it?

US Dollar touches unprecedented level in Pakistan, what's behind it?
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ISLAMABAD - The US Dollar has reached the unprecedented level of its history in Pakistan.

US dollar reached over Rs 119 in the open market on Wednesday with certain money changers offering the greenback for as high as Rs 119.75 while in the interbank market the dollar was being traded at Rs 115.60.

Chief Executive EFG Hermes PakistanMuzzamil Aslam said the spike is on the back of amnesty scheme which will be announced in the budget; individuals seeking to benefit from the scheme were converting their cash holdings into the US Dollar .

Sources also claim that the shift in focus towards the greenback is further fuelled by the proposed changes in the upcoming budget to limit parking of undocumented wealth in property.

Over the weekend Adviser to the Prime Minister on Finance, Revenue and Economic Affairs Miftah Ismail reiterated his comments from last month that rupee would "remain stable" after having "found its optimum value".

In his earlier comments Ismail had said, "Although the money [exchangers] right now are carrying quite a big gap, the market will settle at Rs 115. For the foreseeable future, this is enough … for the next six to eight months, a year … there is no need for further devaluation."

Economy