Pakistan’s money exchange companies lifted the dollar-rupee rate limit after the rupee’s record fall. They said the open market would allow the local currency to gradually depreciate.
New Delhi: Pakistan’s rupee today hit a record low of Rs 255 against the US dollar, according to local media reports. The tool now to get a much-needed loan from the International Monetary Fund (IMF) is cash-tightening. The Pakistani monetary system came to this situation as the government relaxed its grip on the exchange rate.
Pakistan money exchange companies remove dollar-rupee rate limit. With the removal from Wednesday, they said they would allow the local currency to depreciate slowly in the open market.
The Pakistani rupee fell by Rs 24 to trade at Rs 255 against the US dollar at 1 pm, The Express Tribune reported.
Under the control of the Pakistani government, the IMF told Pakistan to end controls and let market forces determine the exchange rate. Pakistan is seeking approval to receive $6.5 billion in funding from the global body, which is currently on hold.
Pakistan received an IMF bailout last year, but has been deprived of funds this year.
Paucity of foreign exchange reserves has led to food inflation in Pakistan. In some parts of the country, the price of flour is selling up to Tk 3,000 per kg packet. People chasing food trucks, fighting for food are doing the rounds on social media.
The country has also been plunged into darkness due to frequent blackouts
Aman Zafar Ali, who runs the workshop, said, “We can’t do anything. Everyone is sitting idle. No machine can be operated.”
Pakistan’s central bank has also been battling rising prices this week.
Banks there raised interest rates to a 24-year high.