Rupee gets stronger in open market

The crackdown against illegal currency dealers has proven highly fruitful, as the dollar rate in the open market fell below the price at the interbank market on Monday. Currency dealers have reported that the open market is now flush with dollars and will sell more than $100 million to the banks this week, while they sold $20m in the last two days of the previous week. The State Bank of Pakistan reported the closing price of the dollar as Rs301.16, down Rs1.79, from Rs302.95 on Friday. However, a more interesting situation unfolded in the open market, where the dollar fell by Rs32 in just six days, reaching Rs300. This drop in the dollar’s value in the open market was due to higher supplies and lower demand. The buying rate for the dollar was Rs297, representing a Rs3 drop in the open market. Zafar Paracha, General Secretary of the Exchange Companies Association of Pakistan, commenting on the situation, said, “It was not the first time that the dollar fell below the interbank market rate, but this time it was the outcome of the crackdown on illegal currency trading, which eroded the grey market from Pakistan.”