The Pakistani Rupee (PKR) is on a winning trend against the US Dollar (USD) in the foreign exchange market. Those unfamiliar with these terms should know that the PKR is gaining ground and becoming stronger relative to the USD, which is excellent news for Pakistan.
On Thursday, the PKR made significant gains on the interbank market. It gained Rs. 1.1 against the USD to end the day at Rs. This indicates that 1 USD is now worth less in Pakistani rupees than it was previously. In actuality, the PKR has gained 4.9%, or Rs. 14.3, against the USD over the past twelve trading sessions.
The positive news is not over yet. Even on the free market, the PKR demonstrated growth. According to the Exchange Companies Association of Pakistan (ECAP), the PKR was quoted on the open market at 296 for selling and 293 for purchasing.
In September, the difference between interbank and open market rates decreased by approximately Rs. 45, which is an intriguing development. This indicates that the rates offered to individuals on the open market are approaching interbank rates.
Behind these positive developments, the State Bank of Pakistan (SBP) has taken action against illicit activities on the currency market. The sector of Exchange Companies has undergone structural reforms, and prominent institutions are establishing wholly-owned Exchange Companies to meet the public’s foreign exchange requirements.
In brief, the PKR is acquiring strength not only against the USD, but also against other significant currencies such as the Euro (EUR), British Pound (GBP), Australian Dollar (AUD), Canadian Dollar (CAD), UAE Dirham (AED), and Saudi Riyal (SAR). This is excellent news for the economy and citizens of Pakistan.