In the wake of a month-long crackdown against smugglers and the dollarmafia across the country, the Pakistani rupee has witnessed a significantincrease in its value against the interbank dollar rate, with a nearly 22rupee gain, while there has been a 40 rupee decrease in the open market.
How did the dollar become stable, and how much cheaper can it get? Howextensive is the network of hawala transactions? What connections existbetween the gold smuggling syndicates, corrupt government officials, andthe dollar mafia? Will the dollar rise again? These are the questions thateveryone is asking these days.
Those who understand the intricacies of the money exchange business believethat a strong hand has been played against illegal dollar trading thistime, and there has been a shift in the strategy against the dollar mafia.Chairman of the Forex Dealers Association Pakistan, Malik Bostan, notesthat this time, even banks are cautious about the dollar rate because theyhave received a strong message, and monopolization is no longer happeningwithin the banks.
Zafar Paracha, General Secretary of the Exchange Companies Association ofPakistan, suggests that the dollar may drop below 250 rupees initially,then even below 200 rupees. Currency dealers, banks, and governmentagencies agree that bringing the dollar below 250 rupees is achievable, andit could even drop below 200 rupees because in neighboring countries, thedollar is trading at less than 100 rupees.
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Malik Bostan, Chairman of the Forex Dealers Association, has revealed thatsignificant sums of money in dollars and gold are being transferred throughbribery, smuggling, and corruption by high-ranking government officials inkey institutions. The daily purchase of 500 kilograms of gold via hawalawas causing a surge in the value of the dollar. In Pakistan, around 30,000companies are part of the hawala network, using it for transactions.