KARACHI: Sept 8: The rupee made gain of another Rs 1 in interbank and Rs 2 in the open market respectively on Friday, bringing USD down to Rs 304 in both markets. Its very rare in Pakistan that US dollar rates in interbank and open market reach to the same level. In August , the rupee-US dollar difference had gone up to Rs 25 . This was an alarming situation for the rupee as it was continuously losing value to US dollar and other currencies.
Widening gap in US dollar rates had given boom to black currency market in Pakistan. This situation could be even more disturbing for Pakistan as rising difference between interbank and open market was also a sheer negation of the agreement signed by Pakistan with the International Monetary Bank (IMF) a few months ago for securing a bailout package of $ 1.2 billion.
Seeing the aggravated situation in the currency market and booming of black market, army chief, Syed Asim Munir, decided to call the shot. He held a meeting with the traders and industrialists in Karachi and assured them to put an end to black currency market. He gave a warning to the forex dealers of harsh action in the case they did not stop artificial jacking up of US dollar rates.
Pakistan is the only country in the world which has set a dirty network of forex changes in the guise of a facilitators to the public. This forex network is involved in money manipulation to such an extend that it has become a monster to pose serious threat to the economy of Pakistan. The commercial banks are another evil in Pakistan they are making money through black marketing of US dollar. Unfortunately, the forex dealers and banks have complete protection of some powerful circles. Now these two networks—banks and forex exchanges- have become like a uncontrollable monsters. The political governments of the past simply ignored these monsters as their ruling elite make money through these black currency markets and forex companies. In the last 10 years, the forex companies and banks not only created black currency market in Pakistan and posed serious threat to Pakistan’s economic sovereignty, but also acted as an agent to smuggle US dollars from Pakistan to Dubai and other destinations.
With change of the guard in the army and taking over of Syed Asim Munir as chief of the army staff, these mafias are either taking a break or temporarily suspending its business of black currency market . This cunning mafia , basically a dummy team of the banks and forex exchanges , will wait and see. Its very important to crush these mafia and save Pakistan’s foreign exchange to stop onslaught of US dollar against the rupee in the future.