PM summons emergency meeting over economic turmoil

Prime Minister Shehbaz Sharif has summoned an emergency meeting with the economy and finance officials over the recent spike in dollar rates and economic turmoil, ARY News reported. 

According to details, the PM has summoned an economic and financial team to form a strategy to counter the recent spike in dollar rates and economic turmoil.

The team would also brief the PM on the current situation.

According to the SBP data, the dollar rate has reached an all-time high against the Pakistani rupee and is currently trading at Rs 225 in the interbank market.

Political unrest wreaked havoc on the currency market for the second consecutive day.

According to details, the greenback spiked sharply by Rs3.01 in the interbank market to settle at Rs 225. The USD is trading at Rs226-227 in the open bank market.

The State Bank of Pakistan (SBP) attributed the 11-rupee change in the exchange rate in just two days to the “market-determined exchange rate system” under which the current account position, news stories and domestic uncertainty contribute to the daily currency fluctuations.

Also Read: Economic turmoil: Dollar spikes by Rs 8.80, PSX loses 608 points

In an apparent attempt to downplay the depreciation, the SBP said a “better measure” of the rupee’s strength is the real effective exchange rate, which takes into account the currencies in which Pakistan trades in inflation-adjusted terms.