In a remarkable feat of financial resilience, the Pakistani Rupee (PKR) has achieved something quite extraordinary – it’s on an impressive 26-day winning streak against the US dollar. As of October 12, 2023, the PKR celebrated yet another day of gains, with a substantial increase of 93.04 paisa against the US dollar in the interbank session, settling at PKR 278.58 per USD.
Interbank closing #ExchangeRate for todayhttps://t.co/rk5CtYgT1S#SBPExchangeRate pic.twitter.com/A6KRkts3wi
— SBP (@StateBank_Pak) October 12, 2023
It’s as if the PKR has found a secret formula for success, and this consistent upward trend is turning heads in the world of finance.
But the story doesn’t end there; in the open market, the PKR’s performance was equally impressive. Exchange companies quoted the dollar at a tempting 275 for buying and 278 for selling. These numbers aren’t just dry data points; they signify the PKR’s strong and steady performance, making it a reliable choice for currency traders and investors.
So, how did this remarkable streak come to be? One key ingredient is the proactive stance taken by the Pakistani government to curb illegal dollar outflows. With an army-backed crackdown in place, the unregulated movement of dollars has been effectively curbed, contributing to the PKR’s winning streak.
Another significant contributor to this success story is the Ministry of Commerce’s bold decision to impose a ban on 212 items previously used in Afghan transit trade. This move, executed through a Statutory Regulatory Order (SRO) on October 3, has significantly eased external pressures on the currency. It’s a sign of how thoughtful policy decisions can translate into tangible results.
The State Bank of Pakistan (SBP) is not to be left out of this story of triumph. The SBP introduced a series of reforms aimed at consolidating and transforming various exchange companies into a single, more transparent category with higher capital requirements. This move has brought much-needed transparency and compliance to the currency market, further solidifying the PKR’sposition.
In line with the SBP’s forward-thinking guidelines, several leading banks, including Habib Metropolitation Bank, Bank Al Falah Limited, Faysal Bank Limited, and others, have chosen to establish their exchange companies. This collective effort underscores the government’s vision for a self-reliant and robust financial ecosystem.
And it’s not just the US dollar that’s bending to the PKR’s strength. The PKR has shown remarkable gains against a range of major global currencies, including the Euro, British Pound, Swiss Franc, Japanese Yen, and Chinese Yuan. This speaks volumes about the currency’s ability to hold its own on the international stage.
In the broader context, during the current financial year, the PKR has appreciated by 7.41 rupees or 2.66% against the US dollar, a feat worth celebrating. However, in the current calendar year, the PKR has faced some depreciation, amounting to 52.15 rupees or 18.72%. This rollercoaster ride in the foreign exchange market emphasizes the significance of the PKR’s 26-day winning streak.
The PKR’s performance isn’t just about numbers on a screen; it’s a symbol of Pakistan’s unwavering commitment to financial stability. The 26-day consecutive appreciation against the US dollar is more than just a milestone; it’s a statement of strength and resilience in a challenging economic landscape. It’s a reminder that even in the face of global uncertainty, Pakistan’s financial landscape can still shine bright.