According to Bloomberg, Pakistan’s rupee is expected to be the best performing currency in the world this month as the interim administration maintains its crackdown on illegal dollar transactions.
According to Bloomberg, the Pakistan rupee increased around 6% in September, a remarkable result considering that most currencies, like the Thai baht and South Korean won, declined versus the dollar on expectations that US interest rates would remain high for a longer period of time.
“When the USD rate reverses everybody, the hoarders, the exporters who are holding their export proceeds, start selling their dollars,” Schehzad said.
The Pakistani government, according to the report, escalated its efforts by prosecuting those involved in illegal dollar exchanges that supported the currency.
The central bank boosted capital requirements for smaller exchange businesses and required major banks to create their own exchange companies in order to make the retail foreign exchange market more transparent and simpler to oversee.