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The Pakistani currency has fallen to a record low in the rupee. Local media reported it was at $255 against the dollar on Thursday. Stumbling follows Cash-strapped government It has loosened its grip on the exchange rate to get much-needed loans from the International Monetary Fund.
Pakistan’s currency exchange lifted the dollar’s maximum peg against the rupee from Wednesday, saying it would allow the local currency to slowly depreciate in the open market.
The Pakistani Rupee fell to Rs. 24 and traded at Rs. 255 to the US dollar at 1 p.m., the Express Tribune reports.
The IMF asked the Pakistani government to end controls and allow market forces to set the price of the currency, a condition that was readily accepted. Pakistan sought approval from the world body for 6.5 billion. USD for funding that is currently on hold.
Although Pakistan won an International Monetary Fund bailout last year, disbursements have stalled this year.
Dwindling foreign exchange reserves have led to massive food price inflation in Pakistan. In some parts of the country, a packet of flour is sold for as much as Rs. 3000. Videos of people fighting over food and chasing food trucks are circulating on social media.
How the country plunged into darkness because of frequent power outages.
“We couldn’t do anything. Everyone is sitting without work. We cannot operate any machinery,” says Zafar Ali, who runs the workshop.
Pakistan’s central bank also raised interest rates to a 24-year high this week to combat rising prices.
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