Amid a worsening political crisis, the rupee suffered another 90 paise loss versus the US dollar on Wednesday in the interbank market.
The dollar reached an all-time high of Rs188.3 compared to Rs185.23 the day before.
There had been a shortage of dollars available to importers, according to currency traders.
Policymakers cannot provide a clear picture of currency depreciation daily because the government is in turmoil over the political situation.
The free float exchange rate concept is not functioning, according to traders and industry leaders, who have called on the State Bank of Pakistan to take a role in providing stability to the economy, which they believe is threatened by exchange rate volatility.
They said that the cost of production has already risen by 20% because of the rapid decline in the rupee’s value.
Even though the central bank is keeping mum, or the present exchange rate scenario, the administration is blaming the increasing demand for dollars on importers.
Works at The Truth International Magazine. My area of interest includes international relations, peace & conflict studies, qualitative & quantitative research in social sciences, and world politics. Reach@ aimen.bukhari@tti.org.pk
