The Pakistani Rupee (PKR) has made a sharp recovery in the open market against the US Dollar (USD) as the local currency closed at Rs. 295 to Rs. 300 compared to Rs. 311 to Rs. 314 a day earlier (Wednesday).
The development comes after the State Bank of Pakistan (SBP) allowed commercial banks to purchase US Dollar from the internet market in order to settle international card-based transactions.
The move will not only reduce pressure from exchange companies but facilitate customers to get a lower exchange rate, especially since Pakistani Rupee (PKR) has continued its downward spiral against the US Dollar (USD) in the open market.
The gap between the Pakistani Rupee (PKR) and US Dollar (USD) in the open market had widened to Rs. 29-30 due to surge in demand from pilgrims and everyone going aboard to spend their summer vacations.
The reduction in the open market rate for US Dollar will also help increase remittance inflows as any notable difference in the rates between open market and interbank market promotes transactions outside of the official banking system.
Read more: Dollar Rate in Pakistan (Daily Updates).