The Pakistani Rupee continued to fall against the US Dollar as it reaches another record low of nearly Rs. 230 at the closing of the interbank market on Monday. However, the closing rate does show slight recovery of the local currency as it was traded over Rs. 232 against the greenback during intra-day trading.
According to the State Bank of Pakistan (SBP), the Pakistani Rupee closed at Rs. 229.88 against the US Dollar on July 25 (Monday), which is a depreciation of Rs. 1.51 (066%) compared to July 22 (Friday), when it closed at Rs. 228.37 against the foreign currency.
It is pertinent to mention that Pakistani Rupee has lost nearly 8% to the US Dollar during the previous week, while the country’s foreign reserves stand below $10 billion and the situation is expected to get worse amid the new political uncertainty caused by the Punjab by-elections.
The current economic situation is also negatively impacting several businesses in the country as they are unable to obtain Letter of Credits (LCs) from the State Bank of Pakistan (SBP), which has resulted in several businesses deciding to halt operations in Pakistan.
An example of such businesses can be found in the automotive industry as Toyota Indus Motor Company (IMC) has decided to halt production in the country due to inability to get LCs for import of Completely Knocked Down (CKD) kits to assemble vehicles.