Pakistan curbing interbank trade to contain dollar shortage: Report

Pakistan’s central bank is discouraging interbank trading due to a severe shortage of dollars that has pushed the rupee to post its worst weekly drop since 1998, according to people with knowledge of the matter.

State Bank of Pakistan asked commercial lenders to manage import-payment requests from their own inflows, such as exporter accruals and remittances, the people said, asking not to be identified discussing private deliberations. If the bank still needs to borrow, it must seek permission from the monetary authority, the people added.

State Bank of Pakistan didn’t reply to an email seeking comment.

The rupee fell about 8% last week,