What is the reason for the latest fall in the Pakistani rupee?
In fact, the Pakistani rupee has been depreciating against the dollar for a long time, but till now the Sharif government had kept it stable by putting a cap on the dollar rate with the help of the Exchange Companies Association of Pakistan. On tuesday night, the President of pakistan Forex Association, Malik Bostan announced the removal of this cap. Boston told BBC hindi that this cap was brought to eliminate the difference between the dollar rate in the black market, interbank and open market, but this increased the demand for the dollar in the black market. As a result, the dollar rate has increased very fast instead of decreasing.
Due to the rapid decline, the rumour of Pakistani currency being declared 'bankrupt' has gone viral. Because of this, people want to convert the Pakistani currency they have into dollars in any way. That's why everyone is buying dollars. Those who are not getting dollars in the interbank market are turning to the black market. Now people are not selling dollars but only buying. Due to this, the demand for dollars in the black market has increased a lot. This is the reason that the rates there have become more than the interbank rate. This can be gauged from the fact that on Thursday, when an all-time low of 255 Pakistani rupees was recorded against 1 dollar in the interbank market, then in the open market, this rate was running at Rs 262, while in the black market, it was running at Rs 20 to 30.