KARACHI: Pakistan’s recent crackdown on black market dollar trading has led to a temporary strengthening of the rupee but has pushed informal currency deals underground and increasingly online.
The rupee, which had fallen sharply earlier this month, recovered from 288.6 per dollar on July 19 to around 286 after July 22, when the military intelligence agency summoned currency dealers and the Federal Investigation Agency (FIA) launched raids on unlicensed operators.
However, traders say the black market has merely adapted. “It didn’t stop — it just moved,” said Ahmad, a long-time dealer in Peshawar. “Now it's on WhatsApp. If you know someone, the dollars come to your house.”
In cities like Peshawar and Karachi, unlicensed exchange shops have either shut down or gone underground, with deals now made via peer-to-peer platforms, couriered cash, and even crypto payments.
A Karachi-based corporate manager said he turned to online forex groups due to increasing documentation requirements in the official market. “No middlemen, no commission — just direct buyers and sellers,” he said.
Meanwhile, Pakistan’s central bank has summoned commercial bank treasury heads, warning them against buying dollars above official rates from exchange companies. Authorities urged banks to depend on their own forex inflows from exports and remittances — both of which are slowing.
The government also aims to narrow the gap between the interbank and open market rates, a key IMF condition. Despite recent gains, the rupee remains under pressure as speculation continues outside regulated channels.
