In September Pakistani rupee turned out to be the most profitable currency in the world, Bloomberg reports. The rupee strengthened more than 6% against the dollar over the month, while most currencies fell against the dollar amid expectations that US interest rates will remain high for a long time, the newspaper reported.
Bloomberg does not list the currencies that took second and third place in September, but according to Reuters, they were the Hong Kong dollar and the Colombian peso – +0.3% and +0.1%, respectively.
At the auction on September 5, the rupee fell to a record low. The dollar exchange rate on the international forex market rose to a record level of 307.9 rupees during trading. During the rest of September, Pakistan’s currency recovered its losses. On Thursday, as of 17:58, the dollar exchange rate decreased to 287.6 rupees per dollar (-1.1%). Pakistan’s foreign exchange market will be closed on Friday, September 29, due to a public holiday.
The strengthening of the position of Pakistan’s currency was observed, among other things, due to the government’s measures to suppress illegal trade in dollars, that is, the sale of dollars without any records and money transfers through unofficial channels, the publication reported.
CEO of Alpha Beta Core Solutions Pvt. Khurram Shehzad said that the withdrawal of dollars in many cases took place through illegal channels, including through the use of alternative money transfer systems such as hawala and hundi. These remittance systems are common in South Asia.
Pakistan’s Federal Investigation Agency conducted raids at foreign exchange companies’ offices across the country, while additional measures were taken at exchange offices to monitor foreign exchange transactions. Pakistan’s acting Prime Minister Anwaar-ul-Haq Kakar this week said the rupee’s rise was encouraging in terms of stability.
The Central Bank of Pakistan has also increased capital requirements for small exchange companies and encouraged large banks to open their own exchange offices to make the retail foreign exchange market more transparent and easier to monitor.
“The rupee did perform well, but the data does not reflect the sharp depreciation that preceded this rally. Pakistan’s currency has been one of the worst performers in recent years,” said Fahad Rauf, head of research at Ismail Iqbal Securities.
Market determined exchange rate is a key condition for Pakistan to receive a $3 billion emergency loan from the International Monetary Fund (IMF), which was agreed in July to help prevent a sovereign default.
2023-09-28 16:12:30
#Pakistani #rupee #worlds #bestperforming #currency #September
