KARACHI: The Pakistani rupee recorded a massive increase in its value in the open market against the dollar on Thursday after a fresh State Bank of Pakistan (SBP) directive that allowed the banks to buy dollars at the interbank market rate to settle international card payments.
The move was aimed to reduce the exchange rate gap between the official and kerb markets.
According to the Exchange Companies Association of Pakistan, the dollar was changing hands at Rs300 in the currency market. It had closed at 311 a day earlier.
The SBP decision also followed the International Monetary Fund’s demand that Pakistan fixes its currency market prior to resuming a $6.5 billion bailout programme.
“In view of the representations received from stakeholders, it has been decided to allow Authorised Dealers to purchase USD from Interbank for settlement of card-based cross border transactions with IPS [international payment schemes],” the central bank has said in its circular.
The analysts were expecting a decline in rupee value following the implementation of new guidelines.
The SBP made the right decision at the appropriate moment, according to the general secretary of the ECAP Zafar Paracha, which will cause the open market currency rate to drop by 20 to 25 rupees.
