The Pakistani rupee is showing signs of recovery against the UAE dirham following a recent period of decline caused by economic challenges, political turmoil, and increased demand for the US dollar. The rupee’s resurgence comes after a government-initiated crackdown on illegal dollar trading, helping it bounce back from a low of 90 against the dirham to 85. This crackdown has compelled illegal traders in Pakistan to sell their American currency holdings.
On Saturday morning, the rupee was trading at 83.8 against the dirham on xe.com, indicating a substantial improvement compared to its recent struggles. However, it’s essential to note that this year alone, the Pakistani currency had lost nearly 22 rupees against the UAE dirham, down from its starting point of 61.7 at the beginning of the year. This volatility was exacerbated by the government’s decision to allow increased imports, driving up the demand for the US dollar.
The extreme fluctuation in the rupee’s value had a significant impact on Pakistan’s expatriate community, leading to a surge in inflation and a double-digit rise in consumer goods prices. This situation compelled expatriate workers to remit more money back to their home country, even as the dollar and dirham yielded more rupees. Analysts stress that the stability of the rupee moving forward hinges on implementing crucial economic reforms and boosting exports to strengthen Pakistan’s financial landscape.
