Amidst a rapid devaluation of the US dollar and mounting concerns regardingillicit dollar speculation, exchange firms have initiated the process ofdepositing their dollar reserves into the State Bank of Pakistan, asreported by ARY News on Thursday.
This move by exchange companies is primarily driven by their growing uneaseabout the continued depreciation of the US dollar. Sources closelyassociated with this matter have revealed that these companies hadinitially accumulated dollar reserves, capitalizing on its recent surge invalue against the Pakistani rupee. However, the decision to step up effortsagainst the black market is anticipated to exert further downward pressureon the dollar’s worth.
Presently, exchange companies are acquiring dollars from the open market ata rate of Rs 305 per dollar, while exporters, motivated by profit, aregrappling with unforeseen setbacks. It has been noted that the interimgovernment’s announcement of a crackdown on the smuggling of US dollars hasled to a noticeable uptick in the number of dollar sellers in the openmarket.
As the nation’s foreign reserves improve, there is a growing sense ofoptimism within the State Bank of Pakistan that the dollar’s value mighteventually dip below the Rs 300 mark.
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In the Interbank market, the US dollar has witnessed a reduction of Rs2.48, currently standing at Rs 304.50. Conversely, in the open market, itsdepreciation has been even more pronounced, with a decrease of Rs 4.00,bringing it to Rs 308. Zafar Paracha, in his statement, emphasized thatexchange firms have initiated the sale of dollars to the State Bank ofPakistan as a direct response to the dollar’s depreciation in the openmarket.
Consequently, the crackdown on illegal dollar trading has led to a declinein the demand for dollars, resulting in more sellers than buyers atexchange company counters.
