ISLAMABAD: Sept 5: Being an engine to currency market exploitation, interbank further pushed its US dollar rates by Rs 1. 25 to take its value today (Tuesday) to Rs 307. In interbank US dollar on Monday was Rs 305.75. Interbank is continuously playing a role for exploitation of the currency market to push US dollar value up.
The open market follows interbank to add its role to make US dollar costlier. The open market had pushed US dollar to Rs 330 , the highest ever its price in Pakistan. Today US dollar traded at Rs 322 in open market against its value of Rs 327 on Monday. Then there is a third black market in Pakistan which is a bi product of the interbank and it operates san any rule or regulations. Pakistan is a perhaps only country on the plant where the central bank does not take any responsibility to check exploitation in the currency market. Its only function is to increase interest rates to legalise undue profit of the banking sector.
Pakistan’s banking sector is thriving as the central bank has provided it a golden opportunity to get unreasonably higher profit on lending to the government. The banks of Pakistan have been a new East India Company. This new East India Company is making hundreds of billions of ‘profit’ from money lendered to the government. The State Bank of Pakistan (SBP) is pushing up interest rates on the pretext of high inflation in the country. For the last four to five years, high interest rate did not play any role to control inflation in Pakistan but it did provided a golden opportunity to the banking mafia to make undue profit and add to Pakistan’s financial crisis in these testing times.
Interestingly, there is no one in Pakistan’s financial sector or the state institutions to check as to why SBP was jacking up the interest rate in Pakistan and paving way for the banking mafia to grab public money in the name of profit on their lending. Unfortunately, the Security Exchange Commission of Pakistan (SECP) and Federal Investigation Agency (FIA) everyone is showing criminal ignorance on the banking mafia’s making-making spree through lending to the government.