Pakistan’s intelligence agency has stepped into the currency market, launching a large-scale operation against illegal dollar trading as the rupee continues to weaken.
According to a report by a wire service, a senior intelligence official recently held an emergency meeting with representatives from currency exchange firms, urging them to take urgent steps to stabilise the falling rupee. Shortly after, security agencies began operations in major cities to clamp down on black market dealers.
The report stated that several illegal currency traders went into hiding overnight, fearing arrest. The surprise crackdown triggered panic in the informal exchange market and caused the dollar to fall by one rupee the following day.
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This rare intervention is being compared to a similar operation carried out two years ago, which temporarily halted the rupee’s slide. However, this time the situation is more critical, with factors such as smuggling, currency hoarding, and increased demand outpacing the formal banking system’s capacity.
Pakistan’s recovering economy remains under pressure due to volatility in the dollar market. Experts say that further instability could put key financial agreements at risk, especially the condition that requires the difference between official and open market exchange rates to remain within 1.25%.