Pakistani rupee becomes the world’s best performing currency in September, following a crackdown against illegal foreign exchange trade in the country.
A 6.1% boost in Pakistani Rupee in September made up for all of the rupee’s losses in August. The Pakistani Rupee hit a record low of 307.1 on Sept 5 but has made a sharp recovery since the country’s financial regulator and security agencies began crackdown the next day to curb black market operations.
The Pakistani rupee was 0.6% up in the interbank market at 286.15 per dollar at the end of week.
The crackdown on black market operators resulted in tens of millions of dollars pouring back into Pakistan’s interbank and open markets, dealers said.
“The government’s stern administrative action against the unlawful foreign exchange dealers and hoarders in commodity markets is stabilizing the exchange rate, providing a respite to the imported inflation and easing out commodity prices,” the Finance Ministry said in its monthly report.
A market-determined exchange rate is essential for Pakistan receiving a $3 billion bailout package from the IMF, agreed in July to help avert a sovereign default.
Finance ministry report added that inflation rate will remain around 29-31% in coming month because of an increase in energy tarrifs and petroleum prices.
Ronan Foley