SBP requests currency dealers to bring down dollar price

Karachi: State Bank of Pakistan (SBP) held a meeting on Wednesday with currency dealers regarding stability of the rupee in the inter-bank market, informing them the currency would be maintained at the current rate.

The central bank was informed by the currency dealers that the shock July 5th depreciation of the rupee against the dollar had battered market sentiment. The dollar in the open market is being traded at Rs107 to Rs107.30 in comparison to the inter-bank market rate where it is hovering around at Rs105.20-30 against the dollar. The disparity between the inter-bank and open market rate gives rise to market speculation, which then encourages the illegal currency business.

SBP requested the currency dealers to reduce the rate of the dollar to not more than 1pc above the inter-bank market rate and told them to do it as soon as possible. After the depreciation, the IMF had welcomed the move although it later said the PKR was overvalued and initially this fall had also been supported by the central bank.

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