End of political uncertainty after polls and SBP & # 39; s notification to bind the dealers to transfer dollars through appropriate channels was attributed as the main factor in the significant decline in the rate of the greenback, which is so high if Rs had risen. 130 in the past week.
According to the association, the dollar price fell as a result of a sufficient supply of foreign currency on the local market. The persons involved in dollar storage were also involved in the sale of dollars.
With a small fall, investors panic and sell the dollar as much as they can, reducing supply and demand pressure and devaluing the dollar in the local market.
At least four million dollars were sold on the open market from Friday to the end of the year, which could further reduce the dollar exchange rate, said the association.
The SBP notification, issued a few days ago, binds dealers to transfer dollars only through the appropriate bank channels as of Tuesday (July 24).
The State Bank of Pakistan has also stopped the exchange companies to move the dollar in bulk. It also stated that LEA has the right to ask for the dollar that will move and freeze if the person can not prove its legal status.
LEA & # 39; s also started the crackdown on the illegal stock exchanges that were in the vicinity of the border areas.
At the moment the exchange companies are not in cash because of the massive sale of dollars and they have stopped buying them.
Pakistan Forex Association President Malik Bostan said the decline should be seen against the backdrop of SBP's movement to halt the inter-city physical movement of dollars
According to media reports, China has agreed to give a $ 2 billion loan to Pakistan immediately, aimed at stabilizing the rapidly exhausting official Foreign Exchange Reserves and providing much-needed breathing space to the new government
In a lifeline offered by the Chinese to mitigate a decline in foreign exchange reserves that will alleviate the pressure on the Pakistani currency suffered as a result of a Widening Current Account deficit that peaks at $ 17.99 billion reached during the fiscal year 2018.
The economic fundamentals of the country had deteriorated before the general elections of 25 July.
Since December, the rupee cumulatively lost more than 21% of its value after the Pakistan state-owned bank reportedly refrained from intervention in response to the pressure exerted by a widening current account deficit
From December 2017 to mid-July of this year, the rupee was devalued in four rounds by the State Bank of Pakistan by about 21 percent to boost exports
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