- Exchange Companies hoarding Dollar Stock in anticipation of further devaluation
Dollar in Open Market Trading reached level of Rs. 147 on Thursday before State Bank of Pakistan Intervened. Retail Consumers were seen wary as they were unable to get Dollars at lower rate.
Azeem Arshad, a frequent traveller from Karachi told The Mint Pk his ordeal: ” I have to fly to Turkey for a recreational visit next week and urgently need 2000 Dollars. However, i was unable to get dollar. Some Currency Dealers outright rejected me citing unavailability of Dollars while some mentioned high rate of 147/Dollar for a limited amount.
Adnan Syed, Resident Editor of The Mint PK said that the shortage is artificial and State Bank of Pakistan will soon take action to stabilize the rate. Market is anticipating that with establishment of Floating Rate Regime, Dollar Exchange Rate will become volatile and rise. However, Not much depreciation is expected.
The State Bank held meetings with Currency exchangers to evaluate the increase in dollar rate in the open market as Dollar disappeared in the kerb market. SBP has previously asked currency dealers to charge not more than 1% Margin on Inter Bank Rate
One of the prime reason for shortage of Dollar is Upcoming Hajj season. Roughly $6 Billion worth of Saudi Riyals will be required this season meeting demand of 2 million pilgrims. While Riyal in market is around 30% of the normal supply. This will require import of Riyal from Dubai against Dollar
If you or your acquaintances are having a problem in getting Dollars, please report at State Bank of Pakistan’s dedicated desk at [email protected]