currency plunged by Rs18.89 during the trade

 the currency plunged by Rs18.89 during the trade on Thursday as a result of a delay in the International Monetary Fund (IMF) arrangement (ECAP).

After closing at Rs266.11 the day before, the dollar was trading at Rs285 in the interbank market.

 

Interbank rates for the US dollar are now at Rs285, up Rs18.89 from March 02, 2023.

US An illustration of a money changer calculating dollars is seen, with a stack of rupee bills in the distance.

KARACHI: According to the Exchange Firms Association of Pakistan, the local currency plunged by Rs18.89 during the trade on Thursday as a result of a delay in the International Monetary Fund (IMF) arrangement (ECAP).

After closing at Rs266.11 the day before, the dollar was trading at Rs285 in the interbank market

currency market analyst, told delays in a settlement between Pakistan and the IMF were to blame for the currency's decline. He stated the country was "nearing a default situation" with this delay.

Uncertain political circumstances continued to be a contributing element, he said.

While the lender's requirement to peg the currency rate with that of the black market had caused confusion, ECAP general secretary Zafar Parahca stated that the market's primary concern was the delay in the deal with the IMF.

the present rate is excessive and shouldn't have increased by this much.

He continued by saying that a day ago, the dollar was trading for Rs290 in the black market.

Proposal for a new "Peshawar market"

"The lender is requesting the deployment of a market-based exchange rate similar to the level of higher side prevailing in the bordering territories next to Afghanistan," the report stated.

The IMF has expressed its unease with the various prices in the interbank market and the dollar rate offered in the "Peshawar market," as there was historically a discount of Rs. 20 per US dollar.

The Washington-based lender and Pakistan's economic team are arguing over the IMF's latest exchange rate recommendation.

An official told the publication that the situations in which Afghan merchants purchased dollars from Peshawar by paying Rs20 extra in contrast to the going cost on the interbank market could not be repeated throughout Pakistan.