The exchange rate between the US Dollar (USD) and the Pakistani Rupee (PKR) is a crucial economic indicator that affects various aspects of Pakistan’s economy. As of September 7, 2023, the interbank exchange rate for USD to PKR stands at Rs. 306.98. In this article, we will delve into the significance of this exchange rate, its impact on individuals and businesses, and how it differs from the open market rates.
Interbank Exchange Rate vs. Open Market Rates
The interbank exchange rate, as mentioned earlier, is currently set at Rs. 306.98 for 1 USD. This rate is established at the beginning of the business day and serves as the benchmark rate for financial institutions in Pakistan. It is important to note that this rate is typically lower than the rates offered in the open market.
On the other hand, the open market rates are determined by banks and forex exchange companies and are often slightly higher than the interbank rate. These rates are what individuals and businesses encounter when buying or selling foreign currency for their needs.
Remittances and Exchange Rates
One critical aspect of the exchange rate is its influence on remittances. Pakistan receives a significant amount of remittances from its citizens working abroad, and these funds play a vital role in the country’s economy. When individuals send money back home, it is typically converted from a foreign currency (such as USD) into PKR.
Incoming remittances are credited to customers’ accounts based on the interbank exchange rate. This means that individuals receive the most favorable rate when converting their foreign earnings into PKR. This can be seen as a benefit because it ensures that recipients get the best value for their money.
Impact on Outward Transactions
Conversely, when individuals or businesses in Pakistan need to purchase foreign currency for activities like travel or importing goods, they are typically charged at open market rates. Banks and forex exchange companies may not offer the same favorable rates for buying foreign currency as they do for selling it. This difference in rates allows financial institutions to generate revenue from currency exchange services.
USD to PKR Exchange Rate in Pakistan Today
| DATE | EXCHANGE RATE (PKR) | CHANGE (PKR) |
|---|---|---|
| 7 September 2023 | Rs. 306.98 | – |
| 6 September 2023 | Rs. 306.98 |