KARACHI: August 23,2023: There is no respite for the rupee as the open currency market in Pakistan goes literally out of control. US dollar value skyrocketed to historic high level of Rs 312 against the rupee in the open market on Wednesday and it added to panic in the currency market as well as overall economic situation of Pakistan.
Everybody who deals in currency is in panic as there seems no stability in the local currency market in the near future. The forex dealers hold inter bank’s bullish trend in US rate responsible of the rupee onslaught.
All Pakistan Currency Dealers Association (APCDA) chairman ,Malik Bostan Khan, strongly believes that interbank market is solely responsible of the current devaluation of the rupee.
Speaking to NEWSMAN , Bostan Khan said ” If interbank rate of US dollar will go up how one can expect that open market will remain oblivious to the situation”. He demanded of the authorities to issue warning to the banks for refraining from creating panic in the currency market through artificial spike in US dollar rate”. US dollar ‘s upward flight has widened the gap between the open market and interbank rates to over Rs 13 at the closing of the currency market . The widening gap and indifference of the economic policy-makers of the caretakers indicate their non seriousness in taking corrective measures to protect the rupee from further slide downward vis- a vis US currency.
Huge difference in interbank and open market rate of US dollar is also a sheer violation of the commitment Pakistan made to the International Monetary Fund (IMF) to secure a bailout package of $ 3 billion a few months ago and it can invite serious reaction from the fund . Pakistan had agreed with IMF to maintain difference in the open market and interbank rate of US dollar less than three rupee. This difference has increased 3 times more than Pakistan’s commitment to IMF. Since August 1 US dollar has appreciated by Rs 11 in interbank and almost double (Rs 21) in interbank.
According to APCDA data, on August 1, US dollar rate in interbank and open market was Rs 286.50 and Rs 291.50 respectively. This equation changed altogether in the last 23 days and on August 23 it took US dollar rate in interbank and open market to Rs 299.90 and Rs 312 respectively.
Unfortunately , despite an alarming free fall of the rupee and its horrifying impact on commoners its not getting attention of the State Bank of Pakistan (SBP).