Rupee helpless in face of soaring dollar

ISLAMABAD (INP): The spineless rupee keeps buckling under the pressure of US dollar as the greenback continued showing an upward trajectory in the interbank trading despite the arrival of IMF tranche last month.
During the morning activity on Wednesday, the dollar rate was appreciated by Rs2.58 and it was being traded at Rs224 in the interbank by noon. Yesterday, the US currency gained Rs1.56 in its value and was closed at Rs221.42. According to experts, the government is responsible for the dearth of dollars in the open market which is causing rupee’s slump. They say that the government has made it mandatory to declare cash and other valuables at arrivals. This move didn’t auger well and the Pakistanis are avoiding bringing foreign currencies.
Besides this, a grey market has also emerged in the open market where rate of dollar is up as compared to the interbank rate. The grey market is evaporating dollar making it expensive. The positive vibes which the market was expecting earlier from the arrival of $1.16 billion IMF tranche could not do the wonders as, according to experts, the challenge of huge debt servicing in next few months still looms wiping out the spirit of rupee resilience.
In order to give boost to gutless rupee, the State Bank of Pakistan on Tuesday imposed a ban on the export of dollar after it has become expensive in the open market. The SBP has imposed a strict condition on the export of dollar. As per the decision, all exchange companies will have to seek permission from the SBP before exporting dollar from September 07, 2022. The SBP has also informed the heads of all exchange companies about the ban on export of dollar. It is worth mentioning that the SBP allowed export of dollar last month on August 15.