Pakistani Rupee sets a new global record against US dollar
In September, Pakistan's rupee has taken center stage on the global financial scene, emerging as the leading performer worldwide. This remarkable turnaround can be attributed to the unrelenting efforts of the interim government in curbing illicit dollar trading, as per a report by ARY News citing Bloomberg.
Bloomberg's analysis reveals that the Pakistani rupee experienced an extraordinary surge of nearly 6% over the course of September. This achievement stands out in stark contrast to most other currencies, such as the Thai baht and the South Korean won, which witnessed declines against the US dollar. This decline was fueled by speculations surrounding the prolonged maintenance of elevated US interest rates.
Notably, the Pakistani rupee strengthened to a rate of 287.95 per dollar on a Thursday, marking a notable recovery from its record-low value of approximately 307 rupees earlier in the month.
Khurram Schehzad, the Chief Executive Officer of Alpha Beta Core Solutions Pvt. Ltd, a financial consultancy based in Karachi, highlighted the significant issue of leakages occurring through unauthorized hawala and hundi channels in the open market.
These informal fund transfer systems are prevalent in South Asia. Schehzad explained that as the USD rate began to reverse, various stakeholders, including hoarders and exporters holding their export proceeds, commenced selling their dollars, contributing to the rupee's resurgence.
The Bloomberg report further illuminates the intensified efforts of the Pakistani government in cracking down on individuals involved in the illegal dollar trade, a move that played a pivotal role in supporting the currency's recovery. This concerted action underscores the government's commitment to stabilizing the rupee and fostering a healthier economic environment in Pakistan.