Grey market, IMF blamed as rupee goes into free fall

As the rupee’s alarming descent against the US dollar continues unabated, experts and stakeholders point fingers at the powerful grip of the grey market and the International Monetary Fund’s (IMF) “significant interference” in the country’s banking and currency sectors. Some said it was unprecedented that the IMF had allegedly got deeply involved in the country’s financial framework, interacting at granular levels with local exchange companies and banks. A known currency dealer alleged that this heightened engagement stemmed from the Fund’s mistrust towards the government, leading the lender to directly ascertain dollar rates from the banking and open markets. “The IMF people interact with the exchange companies and bankers in Pakistan at the lowest level, which was never witnessed before,” a senior banker said.