People are selling dollars in huge numbers, however, we don't have cash to purchase it, says Malik Bostan
KARACHI: The Pakistani rupee continues to appreciate against the US dollar and has gained over 9% or Rs21 during the last nine trading sessions.
Considering the positive cues in the forex market, the country’s top currency dealer has predicted that the greenback will come down to Rs180-190 after the International Monetary Fund’s (IMF) tranche.
Speaking to Geo News, Chairman Exchange Companies Association of Pakistan (ECAP) Malik Bostan said that the Almighty has been kind to this country and this is also because of the efforts of the incumbent government.
“If you look at the June import data, it was $7.75 billion which came down to $4.75 billion, a decline of $3 billion. The appeal of Chief of Army Staff General Qamar Javed Bajwa and his request to UAE and Saudi Arabia helped as well in stabilising the market.”
Bostan said that now the IMF official has also said that Pakistan has fulfilled all prior conditions “we will get the tranche. This news has boosted the market.”
The ECAP chairman added that importers were withholding proceeds and they sold out $215 million in the interbank market on August 1 and the same day greenback fell by Rs10.
“Some people sold dollars at Rs240 and Rs250 and those who were holding back are now selling as well.”
Agreeing with the anchor's assessment, Bostan said people are selling dollars in huge numbers but there are no buyers.
"We don't have much cash to purchase dollars."
Thanking overseas Pakistanis for rescuing the country, Boston said he had predicted that the foreign currency will come down to 185 and appealed to them to invest in the rupee.
“As I said earlier, the dollar rate will come down to 180-190 after the IMF tranche.”
Previously, he added, people were selling $10-15 million and now they are selling up to 20-25 million dollars, pounds and riyal daily.
In response to a question regarding punitive actions taken by the central bank, Boston said some exchange companies were selling at a higher profit rate so the SBP imposed penalties on some of them and closed their ranches but the banks were playing a negative role by opening LCs at higher rates and that was creating panic but the timely intervention of the SBP controlled the situation.
"The SBP has started inquiry against those involved let's see what happens next," he added.