ISLAMABAD: Finance Minister Ishaq Dar while addressing the media, has stated that the sudden surge in US dollar vaule was due to “miscommunication between certain people”. He further assured that the market would adjust itself back to stability.
Dar chaired a meeting of bank CEOs earlier to discuss the recent economic development. He termed depreciation of rupee “surprising” and “artificial”.
“The hike in the dollar was artificial and happened as a result of miscommunication between certain people. A transparent investigation into the matter would be conducted and we will gather all the facts, including who profited and who bore losses from this hike,” he asserted.
Dar further informed that the appointment of governor of State Bank of Pakistan would be finalised once Prime Minister Nawaz Sharif is back from an official visit to Tajikistan.
He also announced that an inquiry into the dollar value hike would be launched once the governor of SBP is confirmed.
Dar further explained that no individual including himself had the authority to artificially intervene into the working of the foreign exchange market and adjust dollar value.
Expressing faith in the open market operations, he said “the market will adjust and stabilise on its own.”
The US dollar was tradiing at Rs105.50 on Thursday (today) afternoon after surging to over Rs108 the other day.
The dollar was being sold for Rs107 in the open market earlier today, said Malik Bostan, president at Forex Association of Pakistan.
The rupee depreciated by about 3.2 pc from Rs104.9 on Tuesday to Rs108.25 on Wednesday, as it wittnessed the highest one-day loss in value since 2008. The dollar value surge sent a panic vibe across the foreign exchange market, with Dar taking notice of the hike later.
According to a statement by the finance division, released in the aftermath of the hike, the finance minister “expressed deep concern, indignation, and disappointment at the fact that the current political situation is being exploited by certain individuals, banks and entities, resulting in the artificial rise of the interbank rate of the US Dollar versus the Pakistani Rupee.”
The spike negatively affected the country’s Foreign Exchange (FX) markets, stated the press release.
Sources are reported to have said foreign investment outflows from the Pakistan Stock Exchange resulted in the surge.
