Karachi: The US dollar crossed the 300 rupee threshold for the first time in Pakistan's history as the cash-strapped nation experienced political unrest following the detention of former PM Imran Khan. The Karachi Stock Exchange and the currency market both showed clear signs of the unstable political situation in the country.
As per the reports from currency dealers, the US dollar was selling at 301 rupees at one point in the open market before trading ended for the day while in the interbank it had hit 299 rupees in mid-afternoon. “This is the first time the dollar has crossed the 300 rupee mark in our history and just shows how much impact the ongoing violent protests are having on the economy,” Zafar Bostan of the Pakistan Forex Exchange Association said.
Last week, the dollar had risen by eight rupees or 1. 8% and was available at 292 rupee and when the markets opened next day the downslide continued with the rupee rapidly losing more value to the dollar. Paracha currency exchange accused the banks of again using the deepening political crisis to make money “unlawfully”.
The financial analyst, Hamza Majeed, said the poor foreign exchange reserves were also a threat to the exchange rate, while the IMF delay in releasing the tranche of $1.1 billion made the situation worse for the country. The State Bank has about $4. 5 billion in foreign exchange reserves, barely enough to cover one month's imports. Exports are on the decline, while foreign direct investment also dropped during the first nine months of the current fiscal year.