SBP directs money changers to ensure 1pc reduction in open-market rate of dollar

Karachi: State Bank of Pakistan on Thursday held a meeting at its headquarters with money changers and directed them bring to reduce the dollar price by one percent to reduce the disparity between open market and inter-bank rates.

Dollar currently is being offered in the open market a rate of Rs107.30-50 compared to inter-bank rate of Rs105.35-45. Forex Association of Pakistan, President Malik Bostan said due to rumours of an imminent rupee devaluation, the open market was overloaded with demand for the dollar.

Denying any such plans of a devaluation, the SBP were apprised by the exchange companies that around $800m had been bought from the open during the last three months, reported a local newspaper.

Bostan added that luxury cars were being imported through hawala on a yearly basis at a cost of $1b. Money changers called for the government to put an end luxury car imports.

SBP provided assurances than in case of liquidity issues, the open market will be supplied with dollars.

Profit had reported due to differential between inter-bank and open market rates was causing overseas Pakistani’s to use hawala and hundi systems for remittances due to a lack of knowledge about proper channels of sending money.

Remittances had nosedived 34pc during September in comparison to August, which the currency dealers termed as ‘shocking.’

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