Rupee bounces back against US dollar in interbank. As the local currency keeps gaining value against the strong dollar, the Pakistani rupee has advanced into recovery mode.
The local currency increased by 0.11 percent during the opening hours of intraday trade. In the interbank market, the rupee was centred around 278.50.
Last week, PKR put an end to its month-long uptrend against the dollar and dropped by Rs1.18 (0.42%) week over week to close at 278.80.
One of the longest periods of appreciation occurred in the first half of October 2023, when the local currency maintained a positive close for 28 straight sessions.
Also read: De-dollarization trend: Iraq to ban dollar cash withdrawals to avert US sanctions
Since September 5, when it hit a record low of 307.1 in the inter-bank market, it has increased by 10.93% overall.
As Rupee bounces back against US dollar in the interbank, Pakistani authorities tightened the noose against currency hoarders and smugglers, which helped end depreciation.
As a result, the rate of local currency in the open market saw gains in addition to the interbank rate.
On the other hand, as part of a significant policy shift to reduce financial crimes and get around US sanctions on Iran, Iraq will forbid cash withdrawals and transactions in US dollars starting on January 1, 2024, a senior official from the Iraqi central bank announced.
According to Mazen Ahmed, director-general of investments and remittances at the Iraqi Central Bank (CBI), this action is intended to prevent the use of roughly 50% of the $10 billion in cash that Iraq imports from the New York Federal Reserve each year for illicit purposes.
