Today, the Pakistani currency fell to a record low of 255 rupees against the US dollar, according to local media reports. Stumbling comes after The cash-strapped government It loosened its grip on the exchange rate to earn much-needed loans from the International Monetary Fund.
Pakistani exchange houses removed the maximum rate of dollar against the rupee from Wednesday and said they would allow the local currency to depreciate slowly in the open market.
The Express Tribune reported that the Pakistani rupee fell by 24 rupees and was trading at 255 rupees against the US dollar at 1pm.
The IMF had asked the Pakistani government to end its control and allow market forces to determine the price of the currency, a condition that was readily accepted. Pakistan had been looking to win approval from the global body for $6.5 billion in financing, which is currently on hold.
While Pakistan won a bailout from the International Monetary Fund last year, the release of funds has stalled this year.
Declining foreign exchange reserves in Pakistan have led to massive inflation in food prices. In some parts of the country, a packet of flour sells for as much as 3,000 rupees. Videos of people fighting for food and chasing food trucks are circulating on social media.
As the country plunged into darkness because Frequent power outages.
“We couldn’t do anything. Everyone is sitting idle. We can’t operate any machines,” says Zafar Ali, who runs a workshop.
Pakistan’s central bank this week also raised interest rates to a 24-year high to combat rising prices.
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