Currency hoarders are again active to spread speculation about dollar rate. The gap between rupee’s value in open market and the interbank is on the rise, the dollar is being traded at much higher price in open market.
The recent strength gain in rupee value, jumping from a record low of 276.58 on Feb 3 to 259.99 on Friday in the interbank market had added fuel in speculation and rupee is being traded in open market at 268 against the dollar.
On the other hand, there are news of black market active on side by side where local currency is now changing hands at significantly higher rates of up to Rs300 per dollar.
This is because some bankers are of the view that the recent strength gain by strict policy of not opening of letters of credit (LCs) for imports.
Currency dealers are also of the view that increase in value of rupee is due to strict control of State Bank of Pakistan which not allow outflow of dollars and importers can’t buy from banks.
The stict control over outflow of dollars, importers are active in open market to buy dollars, which is leading to increase in dollar rate in that market.
The money exchange companies had already requested State Bank of Pakistan to allow them to settle LCs of up to $50,000 imports but SBP is reluctant due to low reserves.
Finincial experts see another imminent IMF bailout in June.
Meanwhile, Murtaza Syed, a former deputy governor of the SBP, told Bloomberg that Pakistan would need another IMF deal in June as it had to pay $10-$12 billion in the next six months while it required up to $35bn for the next three years for debt servicing.
He said Pakistan needed to reschedule its loans otherwise, the common people would have to bear the burden of falling economy.
Government is active in all fronts to obtain funds from all sources. However, IMF is delaying loan instalment worth $1.1bn which could trigger uncertainties about economy.
The Exchange Companies Association of Pakistan has shared their insight that in the black market, the dollar was being traded at Rs285 in Karachi, Rs290 in Peshawar and up to Rs295 to Rs300 in Kabul.
