Dollar crashed
ISLAMABAD: The value of the US dollar crashed in the open market on Thursday after the State Bank allowed leading banks to open foreign exchange companies. The central bank also enhanced the minimum capital requirement (MCR) for foreign companies to Rs 500 million, from the previous Rs 300 million.
This strategy will eliminate small companies from the business of foreign currency trading.
President of the Forex Association of Pakistan Malik Bostan said that many dealers involved in smuggling and black-marketing of the dollar have been arrested.
As a result, the foreign exchange companies surrendered $20 million to the State Bank in the last two days, Malik Bostan, President of Forex Association told media on Thursday.
He said, “The dollar’s open market rate has dropped below the interbank rate. The dollars’ buyers have disappeared from the market today.”
“Several agents of the black mafia have been arrested in crack-down of the task force, he said, adding several others have gone underground into hiding.
The dollar-rupee exchange rate in the open market today dropped between 302 to 305 rupees, Bostan said.
The banks are selling the dollar to importers at Rs 305.70,” dealers said.
President Forex Association of Pakistan said that the US dollar has entered in the reverse gear mode and will come down to Rs 300.
Earlier, on Thursday morning the US dollar shed more value for the third consecutive day after the government initiated a stiff nationwide crackdown against smugglers and hoarders. On Thursday, the dollar-rupee exchange rate fell to Rs 305 in the inter-bank and 310 in open market trading. Thus, in the open market, the greenback has lost 23 rupees value in just three days.
Dollar lost Rs 23 in open market trading in just three days.
However, in inter-bank trading, the dollar’s value fluctuated around 305, after touching the 307 rupee highest mark on Tuesday. From Sept 5 (Tuesday), the government has initiated a countrywide crackdown against currency smugglers and hoarders of essential consumer items.
Meanwhile, the gap between the inter-bank and open market value of the dollar versus the rupee also fell below the IMF’s permissible limit.
On Thursday, the dollar-rupee gap in the inter-bank and open market trading was just around five rupees as against 25 rupees three days ago.
