KARACHI - Economic experts have expressed the hope that government’s efforts to strengthen the local currency against the dollar would benefit country’s economy, saying that timely efforts of the government helped restore the value of Pakistani rupee.
Exchange Companies Association of Pakistan (ECAP) Chairman Malik Bostan told The Nation that dollar depreciation against rupee would continue in near future. Bostan hoped that the US dollar rate, which had crossed the figure of Rs110 a few months back, would come down to Rs 90 in next few days. ECAP chairman said finance minister Ishaq Dar, after massive decline in rupee value, had clearly warned the banks in a meeting that the ministry would cancel the licenses of banks found involved in speculations. “This warning worked, bringing dollar rate down,” he said.
He claimed, “Actually, the previous situation (massive jump in dollar value) was the result of banking cartel holding dollars to increase its value for profit.” He explained that private banks had held the dollars which were sold by exporters and it created hype in the money market, resulting in increasing the value of greenback. “It all had happed because of previous government’s policy of facilitating those banks which were holding dollars to increase its value against rupee,” he added.
Aimon Khan, analyst at Aerari, said during last few days there was panic in the market and every one tried to sell dollar including the exporters. “Better dollars supply to the market due to different reasons including reserves growth, flow of remittances are some the reasons that brought US dollar price down in double digits,” Aimon said and added rupee appreciation would also bring inflation down. “Consistency is good for the market and Ishaq Dar is still warning the market players to avoid unnecessary speculation, which is good,” she said. “Rapid increase or rapid decrease is not good for economy but we can’t say that current depreciation of dollar is artificial,” she said.