KARACHI: Nov 16,2022:. With going forex reserves low to an alarming level , US dollar has again taken upward flight against the local currency..
US dollar appreciated by 30 paisa and closed at Rs 222.20 in interbank in the first session on Wednesday .
US currency had closed at Rs 221.90 the other day in interbank.
Interestingly , interbank rate of US currency is showing upward trend for the last few days though its pace of appreciation is slow and gradual .
In contrast to interbank, US dollar and local currency are showing stability for the last around six working sessions. In open market , US currency is stable against the local unit at Rs 225.50.
Pakistan’e currency is under pressure for various factors . Its facing huge pressure of receding forex reserves. In recent weeks , Pakistan’s forex reserves had gone down to $ 7.9 billion.
These reserves are not enough to support the local currency and maintain much -needed stability agaisb US currency .
Malik Bostan Khan, Pakistan’s top forex man, attributes rising pressure on the rupee to current Pakistan’s trade mode with Afghanistan. He claims Pakistan is at disadvange of $ 2 billion a month (S24 a year) as its arrangement with Afghanistan for trade in local currency is one sided and favouring Afghanistan . He wonders as to why Pakistan is not taking Corrective measures to shed rising pressure on its forex reserves .
Talking to NEWSMAN , Malik Bostan Khan on Wednesday argued that Pakistan should formulate a bartering system for trade with Afghanistan as it will end outflow of US dollar from Pakistan and subsequently end pressure on Pakistan’s forex reserves .
“Bartering is the best solution to trade with Afghanistan ” Mr Khan opined .
Malik Bostan Khan strongly believes Pakistan’s facility granted to Afghanistan of trade in local currency was being massively misused and Pakistan was paying huge price for it.
Malik Bostan Khan argued that he had proposed barter trade with Afghanistan.when Finance minister ,Ishaq Dar, had held a meeting with the representatives of the forex companies in Karachi.
Mr Dar had rushed to Karachi some three weeks ago for a meeting with forex companies on the issue of illegal trade of US currency in Pakistan.
According to NEWSMAN sources , Ishaq Dar had issued strict warning to forex companies in case they were found involved in illegal trade of dollars.
Many in currency market believe that forex companies are rarely found involved in illegal business of dollar to create it’s artificial shortage . The currency market experts do believe that these are the banks which manipulate the market and make unlawful gains on US dollar business.