LAHORE: As the US dollar kept fluctuating and hit record high of Rs159against rupee, registering a 6.5% surge in last couple of weeks, theFriends of Economic and Business Reforms (FEBR) President Kashif Anwar hasurged the government to take action against shortage of dollar in localmarket to control heavy losses to economy inflicted by the local currencydepreciation.
In a statement issued here on Sunday, Kashif Anwar expressed surprise oversudden appreciation of dollar in spite of stable situation of foreignreserves and smooth flow of remittances.
He said that the widening current account deficit, excessive governmentborrowing, absence of foreign flows and lack of foreign investment are thevital reasons for constant depreciation of Pak rupee.
The President FEBR said that the US dollar kept fluctuating in value bothin the interbank and open market and was traded for Rs158, with thegreenback registering a 5.7 per cent appreciation in the last 11 days.
He said that in the last 10 days, the local currency has lost Rs6 againstthe dollar setting a new record in the interbank market. There was no checkfrom the State Bank. A panic-like situation was seen in the market sinceevery offer to sell dollars was higher than the previous one, he added.
If the rupee’s slide is not stopped, the dollar may hit a new high, KashifAnwar said who was worried about the government’s agreement with the IMFregarding the exchange rate management. He was confused as to why the SBPdid not intervene in the market to arrest the rupee’s slide.
Read Top Stories
He called for launching a crackdown against illegal money changers, as costof deals done by the businessmen with their foreign counterparts hasincreased manifold and country loses billions over devaluation of just onerupee which is detrimental.
The President FEBR said that illegal international transactions indollar-denominations via Dubai may create shortage of dollars in Pakistanopen market.
Kashif Anwar said that local currency is losing position mainly due to goldsmuggling from Dubai, eating up around $5 million daily. He asked thefinance minister to direct Federal Investigation Authority, IntelligenceBureau, Custom Intelligence and State Bank of Pakistan to keep strictvigilance to control currency and bullion smuggling.
He said the State Bank should immediately take notice of the situationwhich is causing panic in the currency market.
