Pak rupees hit new low vs USD, slides to Rs 227.88 a dollar
The fresh drop came after the government failed to make any headway in its talks with the International Monetary Fund (IMF) for the revival of its stalled USD 6.5 billion loan programme.
The local traders of Afghanistan are now opting to use of Pakistani rupee as mode of financial transactions for payment in many provinces of the country. The main reason is the collapse of Afghanistan’s banking sector, coupled with Taliban-imposed restrictions on money exchange systems.
The circulation of Pakistani rupee among Afghan traders is being witnessed for the past one month. However, the Pakistani rupee is not being openly accepted for doing trade amid fears of restrictions imposed by the Taliban regime, who have allowed use of Afghani currency for all operations in the country.
The use of Pakistani rupee saw a major decline as the past governments in Afghanistan opposed to its use. However, under the Taliban rule and the deteriorating Afghan currency value, the Pakistani rupee is fast becoming the prime currency for trade, especially by traders who do business along the Pakistan-Afghanistan border.
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The Taliban government has been working hard to reactivate its banking system, calling on the US to unfreeze the country’s central assets worth $9 billion, placed in the US. The Taliban regime has also been calling on the global community to help the country stand back on its feet through economic bailout, humanitarian aids.
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