After the State Bank of Pakistan (SBP) permitted the banks to purchase dollars at the interbank market rate to settle foreign credit card payments, the Pakistani rupee significantly strengthened against the dollar in the open market on Thursday.
"The dollar rate has decreased by Rs27 for the first time in Pakistan," remarked Malik Bostan, chairman of the Exchange Companies Association of Pakistan (ECAP), congratulating the SBP governor and Finance Minister Ishaq Dar.
Bostan was quite complimentary of Dar for acting quickly on his suggestion, which helped the rupee appreciate significantly against the dollar.
The chairman of the trade group for money changers said that commercial banks were buying dollars on the open market, often for credit card settlements.
Bostan stated that Dar had been in touch with him when the dollar touched Rs315 and asked him why the difference between interbank and open market prices was getting wider.
"The finance minister swiftly made a decision and published the circular yesterday after hearing this.
Bostan stated that the rupee rate would rise further and that this was a test phase that lasted through July 31.
He said that pilgrims would profit from the change since, as opposed to previously, when they purchased dollars for Rs315 each, they could now do it for Rs285.
In a previous announcement, ECAP stated that the dollar was trading at Rs300. A day earlier, the US dollar reached Rs311 at the close.
The SBP's decision was also prompted by the IMF's requirement that Pakistan stabilizes its currency market before beginning a $6.5 billion rescue package.
"In view of the representations received from stakeholders, it has been decided to allow authorized dealers to purchase USD from Interbank for settlement of card-based cross-border transactions with IPS [international payment schemes]," the central bank stated in its circular.
According to the general secretary of the ECAP, Zafar Paracha, the SBP made the correct choice at the right time, which will result in a 20 to 25 rupee decrease in the open market exchange rate.
"The dollar rate has decreased by Rs27 for the first time in Pakistan," remarked Malik Bostan, chairman of the Exchange Companies Association of Pakistan (ECAP), congratulating the SBP governor and Finance Minister Ishaq Dar.
Bostan was quite complimentary of Dar for acting quickly on his suggestion, which helped the rupee appreciate significantly against the dollar.
The chairman of the trade group for money changers said that commercial banks were buying dollars on the open market, often for credit card settlements.
Bostan stated that Dar had been in touch with him when the dollar touched Rs315 and asked him why the difference between interbank and open market prices was getting wider.
"The finance minister swiftly made a decision and published the circular yesterday after hearing this.
Bostan stated that the rupee rate would rise further and that this was a test phase that lasted through July 31.
He said that pilgrims would profit from the change since, as opposed to previously, when they purchased dollars for Rs315 each, they could now do it for Rs285.
In a previous announcement, ECAP stated that the dollar was trading at Rs300. A day earlier, the US dollar reached Rs311 at the close.
The SBP's decision was also prompted by the IMF's requirement that Pakistan stabilizes its currency market before beginning a $6.5 billion rescue package.
"In view of the representations received from stakeholders, it has been decided to allow authorized dealers to purchase USD from Interbank for settlement of card-based cross-border transactions with IPS [international payment schemes]," the central bank stated in its circular.
According to the general secretary of the ECAP, Zafar Paracha, the SBP made the correct choice at the right time, which will result in a 20 to 25 rupee decrease in the open market exchange rate.