KARACHI: A growing shortage of dollars in the interbank market has unsettled the exchange rate, prompting banks to offer higher-than-official rates to attract remittances, while importers are forced to pay a premium for greenbacks.

Despite healthy inflows, the recent geopolitical shocks — including the Iran-Israel conflict and a brief four-day skirmish between Pakistan and India — have shaken confidence in the rupee’s stability. The uncertainty has increased pressure on both the interbank and open markets.

“Banks are offering higher rates to remitters........

© Dawn Business