Despite record-high remittance inflows and a current account surplus, the currency market is experiencing a shortage of dollars, with banks charging rates higher than the officially quoted figures, Dawn reported, citing market sources.
According to the report, currency dealers have said that importers are facing difficulties in securing dollars for their transactions, with even small amounts like $15,000 for a letter of credit proving challenging to obtain.
Currency experts are puzzled by the tight dollar liquidity, especially following the close of the fiscal year 2024-25 and the completion of all payments by the State Bank of Pakistan (SBP).
The situation is even more alarming as no banker or exchange company representative was willing to comment on the currency market, fearing potential consequences for speaking about the real state of affairs.
Banks are charging Rs2 to Rs2.5 per dollar above the SBP’s official rate. The central bank’s rate was Rs285.16 on Thursday, meaning importers are effectively purchasing dollars at Rs287-288 per dollar.
The Exchange Companies Association of Pakistan (ECAP) reported the open market rate at Rs288.60 per dollar, a rise of Rs10 from the previous year’s Rs278.
Despite selling approximately $5 billion to banks during FY25, many exchange companies are still grappling with a dollar shortage. Students, travellers, and patients needing medical treatment abroad are also struggling to secure dollars from banks.
Meanwhile, the country’s total reserves have now reached nearly $20 billion, with $5.431 billion held by commercial banks.
