The Pakistani rupee has encountered a historic nadir against the US dollar, intensifying concerns over the nation’s economic stability. The greenback surged to an alarming Rs300.26 in the interbank market on Thursday, marking an unprecedented milestone that has sent shockwaves throughout financial circles.
Simultaneously, the open market witnessed a substantial uptick in the dollar’s worth, as it gained Rs2 and commanded an exchange rate of approximately Rs314/$. This swift appreciation of the US dollar in both markets has ignited discussions about the broader implications for Pakistan’s financial health.
One of the most pressing concerns lies in the expanding chasm between exchange rates in the interbank and open markets, which has ballooned to over 4%, equivalent to Rs14. This stark contrast, in comparison to the modest 1.25% (around Rs4) difference advised by the International Monetary Fund (IMF), has raised questions about the sustainability of the ongoing $3 billion loan programme.
In the preceding trading session, the greenback edged precariously close to the Rs300 threshold, settling at roughly Rs299.63/$. The consistent erosion of the local currency’s value over the course of the trading week has further fueled apprehensions among investors and citizens alike.
As the nation grapples with this challenging economic landscape, analysts and experts are meticulously assessing the potential repercussions of these developments on Pakistan’s fiscal health and its ongoing relationship with international financial institutions.
