KARACHI : August 16, 2022. Exchange Companies Association Pakistan (ECAP), Malik Bostan Khan , has appreciated State Bank of Pakistan (SBP) for permitting forex exchange companies to export US dollar. He said with the permission from SBP, forex companies will export US currency and buy it from sellers at low profit/ margin and surrender to the banks to build-up forex reserves.
Malik Bostan Khan, in a statement issued on Tuesday, also requested to the exchange companies to trade US dollar at possible less margin to encourage the sellers to off-load their stocks at forex companies counters rather than holding it at home or out of banking system.
He said forex companies were having problem of cash flow and denying buying of US dollar from the sellers due to funds paucity and it was slowing down sale of US in the market . Malik Bostan Khan said he had talked to acting governor SBP , Dr Murtaza Syed and deputy governor ,Dr Anayullah, as well as other concerned officials to brief them on problems being faced by forex companies and on his request the SBP formally issued a circular for permission of export of US dollar through forex companies.
Last month, Malik Bostan Khan had appealed to the public when US dollar had gone all time high against the rupee touching level of 245 in open market to come- up and sell their US currency to help the country out of risk of default. The public responded to Malik Bostan Khan’s request and they off-loaded US dollar in the market. Selling of US dollars by the public in the market not only stopped artificial boom of the US currency and averted a serious crisis of default of the country, but also brought US dollar rate down to below Rs 210 level.
In July, US dollar had gone all time high in Pakistan’s currency market which created a panic like situation in the market. It badly shook confidence of the investors who preferred to sell-off their stocks. In last week of July ,Pakistan Stock Market (PSX) had literally turned into a bloodbath of the investors who lost hundreds of billions in just less than a week.
Malik Bostan Khan came in and he appealed to the public to avoid holding US currency as it could result in default of Pakistan on its foreign debt liabilities. His timely action brought respite to the local currency. From start of the current month, US dollar had shed Rs 28 in interbank market and around Rs 40 in open market.
Malik Bostan Khan cautioned those who were still holding US dollars that they should sell-off all their currency as its going down to 185 level against the rupee in coming weeks.
“ Those who are still having US currency with a hope for rebound in its value they will be big losers”, ECAP chairman concluded.