The State Bank of Pakistan (SBP) has expressed serious concerns over speculation by banks in the currency business, saying they were involved in the multibillion-rupee game, amid a sharp decline in the value of the local currency.
According to a report by Dawn in this regard, a high-level meeting, chaired by SBP Governor Dr Reza Baqir and attended by presidents of at least ten to twelve banks, was held in the State Bank on Thursday.
Media reports state that the central bank confronted banks for engaging in speculative trade in the forex market, and warned them to stay away from the activity, as it pushed to curb speculation and prevent the rupee’s free fall.
“The SBP has warned banks against such type of practices, otherwise strong action will be taken against them,” a report by The News stated quoting sources.
It is pertinent to mention here that the rupee has been described by international currerncy watchers as the worst performer this year, falling 13.4 per cent against the dollar since the beginning of the current fiscal year (FY22).
Earlier, Adviser to Prime Minister on Finance and Revenue Shaukat Tarin while blaming the same on banks had said that speculative elements would be disappointed as the rupee could appreciate due to the revival of the IMF bailout soon.
Moreover, the SBP is likely to make a sharp move in the interest rates while announcing its monetary policy today in a bid to control the surging inflation.
