KARACHI: October 12, 2022: After losing value for around 13 sessions in a row, US dollar stuck back on Wednesday by gaining Rs 1 in its value in open market.
In the first session on Wednesday, US dollar soared up to Rs 218 against Rs 217 of the last day. US dollar had closed at Rs 217 on Tuesday in open market and at the closing of the first session on Wednesday its jumped up to Rs 218 to a rupee.
The State Bank of Pakistan’s denial to issue US dollar in the interbank is major reason of rebound in US dollar in local currency market. Another reason that helped US dollar take driving seat against the rupee is government decision of allowing Letter of Credits (LCs) to facilitate the businesses and industrial activities in the country.
Since coming back of Ishaq Dar, the rupee was gaining stability in value against US dollar. The downward trend in US dollar value helped restore confidence of business community and industrialists to re-start their trading and production activities.
The market analysts were expecting more decrease in US dollar to a dollar. Finance minister ,Ishaq Dar, himself had called US dollar current value against the local unit artificial and warned to the money market manipulators to discontinue their unlawful activity of jacking up US dollar .
The upward trend in US dollar indicates US dollar mafia had taken a lull and become active again. It also establishes that SBP’s so called autonomy is going to hurt Pakistan beyond repair.
Pakistan Tehreek e Insaf (PTI) government had passed a bill allowing total autonomy to SBP to meet International Monetary Fund (IMF) condition to qualify for a $ 6 billion bailout package under its Extended Funding Facility (EFF).