KARACHI: State Bank of Pakistan on Wednesday was apprised by currency dealers that demand of dollar in kerb market remains high.
In a meeting, SBP demanded the currency dealers to bring the open market rates of dollars down and currency dealers in reply said demand was coming from several sources, reported an English Daily.
Pakistani importers are also driving the increase in demand of dollars, as they procure dollars from the kerb market to settle their accounts for imports being received from China due to holidays which will start from 5th February.
According to Malik Bostan, President Forex Association of Pakistan (FAP) stated in last year over $1.3 billion have been deposited by Pakistani’s in their accounts. He added many Chinese citizens living in the country, who were doing retail business have rupees and are procuring dollars or any other foreign currency.
Bostan added, this is the driving force behind increased demand of foreign currency which ultimately leads to sale of more US dollars. Foreign currencies get exported to Dubai and equivalent dollars of same amount are imported, he said.
The government’s plans of launching dollar denominated bonds saving scheme was increasing the hording of dollars, since this scheme is expected to offer 5 percent per annum yield while banks offers a meagre return of 1 percent, the SBP was informed.
Also, further fears of rupee devaluation were leading people to buy more dollars at public level, which was eroding confidence in PKR, was also brought up during the meeting.
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