KARACHI: The rupee further depreciated to an all-time high of Rs119.50against the US dollar in the kerb market on Wednesday.
It comes merely days after the central bank had held an emergency meetingwith currency exchange companies in which their heads were requested toarrange an adequate supply of dollars in the kerb market, reported Englishdaily.
Separate meetings of two representative bodies of the currency exchangeoperators were held with their members in which it was decided to decreasethe dollar rates.
Also, anyone found not following the directives of these two representativebodies would be penalized. Forex Association of Pakistan (FAP) PresidentMalik Bostan said its members had decided to reduce the dollar selling rateto Rs118.70 on Thursday morning.
And Exchange Companies Association of Pakistan (ECAP) in tandem with FAPproclaimed a similar selling rate of Rs118.70 and Rs118.40 for buying.
But both representative bodies don’t possess the legal authority toinitiate action against its members for selling dollars at variable ratesas the kerb market doesn’t follow any fixed price mechanism.
But the representative bodies of the currency dealers said in case ofdirectives not being followed, membership of a company can get revoked.
The dollar rates would be set twice daily, in morning and evening in lieuof demand and supply. The central bank will be responsible for decidingabout the supply of dollars, said Mr Bostan.