Bloomberg predicts that Pakistan’s currency would fare best worldwide this month as the interim administration keeps up its drive against illegal dollar transactions.
Bloomberg reports that despite other currencies, including the South Korean won and Thai baht, falling against the dollar due to expectations that US interest rates will remain high for longer, the Pakistani rupee increased by approximately 6% in September.
The exporters who are hoarding their export revenues start selling their dollars when the USD rate reverses, according to Schehzad.
The story claims that Pakistan’s government stepped up efforts by going after those who engaged in illegal dollar transactions that supported the currency.
The central bank raised the capital requirements for smaller exchange businesses and mandated that major banks set up their own exchange companies in order to strengthen the transparency and supervision of the retail foreign exchange market.