Pakistani banks start charging dollar transactions at open market rates

Pakistani banks have announced that they will settle debit and credit card transactions made with foreign retailers and websites at the open market exchange rate for the US dollar.

The conversion rate for the transactions would be calculated by the open market rate in place at the time, which might not match the rate listed on the foreign merchant’s website.

Customers were advised by the banks in a statement that they could only settle debit or credit card purchases with foreign retailers or websites by buying dollars on the open market. As a result, the conversion rate for these transactions will be determined by the current open market rate.

The statement, according to bankers, was made in response to several client concerns over the increased exchange rate.

On Friday, the Pakistani rupee lost Rs0.02 to the US dollar in the interbank market, continuing its downward trajectory.

The State Bank of Pakistan (SBP) reported that the exchange rate of the local currency for the dollar was Rs227.12. Which shows a 0.01 per cent decline from the close of Rs227.12 on Thursday.

According to SBP, the Pakistani rupee is valued at Rs227–228 against the dollar. However, in the open market, the greenback is priced above Rs250 and goes as high as Rs275.