Dollar crunch disrupts the forex market in Pakistan
Dollar shortage in Pakistan has created a dislocation in the forex market, with banks offering different rates than inter bank institutions.
Due to their inability to cover import payments, banks are offering higher spreads on import and export transactions than the inter bank market, Tresmark, a treasury market portal, said. To track this new rupee rate, the portal has launched a new ticker.
A delay in the International Monetary Fund's bailout program has caused the South Asian nation to see a severe dollar shortage this year. Toyota and Suzuki's local units have also hit by a parts shortage due to a ban on imports to curb dollar outflows next month, resulting in multiple days of production stops. There was a sharp drop in the rupee's value as a result of the deteriorating external...