KARACHI: With the elections just a day away, foreign currency trade isbeing impacted as the dollar is being sold Rs4-5 higher in the kerb marketthan the rates set by currency exchange companies.
The dollar was being traded at around Rs130.80 in the kerb market on Mondayaccording to A category exchange companies, reported local newspaper.
The buying rate on Monday was Rs130.30. But this didn’t portray the actualsituation of the market as various currency exchange companies refused tosell dollar and when they did it hovered around Rs132-135 a dollar.
According to currency dealers, 25 percent were sellers and 75 percentbuyers, which interrupted the balance of inflows and outflows. They addedexchange rate fluctuations would settle after conclusion of the elections,but there is no chance of dollar return to its pre-devaluation positionafter shedding 20 percent in last seven months.
Also, the 20 percent appreciation of the dollar has made Hajj expensive forPakistani’s. The commercial banks or the State Bank of Pakistan (SBP)aren’t bound to ensure provision of dollars to people leaving for Hajj, sothey buy US dollars and Saudi Riyals from the open market.
Furthermore, the Saudi Riyal has shot up to Rs34-34.50 from Rs30 a fewmonths ago. This rate being provided by the currency exchange companiesisn’t accurate, as the real rate is higher because of shortage of SaudiRiyals in the market.