KARACHI: US dollar buying from the open market started increasing for the first time since the Covid-19 pandemic made its way to Pakistan in March. However, currency dealers said current trading was still much lower compared to pre-coronavirus levels.
Since the emergence of Covid-19 in the country earlier this year, dollar buying in open market saw a sharp fall. Currency dealers said the situation was still not much different but buying for students’ fee and some medical needs has increased.
Travelling abroad for businesses and holidays stopped after coronavirus spread globally while large and regular buying of forex for Umrah trips also came to a halt.
“In August, there were barely five per cent buyers in the open market which increased to estimated 10pc month,” said Malik Bostan, the president of Forex Association of Pakistan.
According to currency dealers, the greenback has lost attraction as ‘savings’ since many Pakistanis kept selling their holdings in the last six months. Due to steep fall in the oil prices (oil trading is pegged with the US dollar), the dollar did not perform well against major currencies.
In the last three days of August, US dollar lost 1.3pc against Pak rupee in the inter-bank market. The country increased its foreign exchange reserves to $19.84bn on August 28 which was a three-year high. In 2017, the country’s reserves were $21.4bn.
“Once Umrah travel begins, buying from open market would be much higher than at present,” said Bostan.
