KARACHI : October 19, 21022: US dollar (USD) gave another jolt to the rupee by appreciating by Rs 1.70 on mid-day trade on Wednesday.
With Wednesday’s appreciation, USD rose to Rs 225.70 on closing of midday trade in open market against its last day value of Rs 224. It also gained 55 paisa in interbank and reached to Rs 221.05 at closing of midday trade.
USD is appreciating in local market after opening -up of letter of credits (LoCs), valuing upto $ 50000. Top forex dealer, Malik Bostan Khan, terms current USD appreciation as a temporary phenomenon and believes this wave is going to end soon.
Mr Bostan also hopes that the local currency will bounce back in near future to move to its real value against USD.
Talking to NEWSMAN , Mr Bostan said “I personally believe permission for opening of LCs upto $ 50000 has put pressure on the local currency, but it’s a temporary phenomenon and would end soon”.
Top forex dealer is demanding end of trade with Afghanistan in the local currency to end pressure of USD on the local unit. He argued that Pakistan’s facility to Afghanistan to have trade with Pakistan in local currency was being massively misused and adding heavily to Pakistan’s economic woes.
Top forex dealer had taken up the matter with Finance minister , Ishaq Dar, some two weeks ago and prooosed him to replace
Pakistan’s trade with Afghanistan on bartering principle .
He argued that Pakistani importers do not have Afghan currency whereas Afghans whose large majority is in Pakistan and can take PKR from Pakistan to their country and pay to Pakistani importers to import anything from this country.
Mr Bostan recalled “I have seen many cases where Afghan exporters refused to accept local currency for imports in Pakistan but they pay in local currency when they import anything from Pakistan”.
He claimed that Its time for Pakistan to replace existing system of trade in local currency with Afghanistan and at least introduce a barter system for it. Mr Bostan strongly believes that imposition of his proposal can help the rupee gain its real value in currency market in no time.