Exchange companies vow to cap dollar at Rs124.50

KARACHI: Exchange Companies Association of Pakistan (ECAP), the representative organisation of the country’s currency dealers, on Friday resolved to keep the rate of dollar at 124.50 rupees to stabilise the open market.

“We have decided [to keep] dollar at Rs124.50 and all the members have committed not to sell the US currency above this rate,” the ECAP said in a statement.

A decision to this effect was taken after an emergent meeting held a day earlier to discuss the ongoing surge in the prices of greenback, the association said. The ECAP, in its statement, strongly advised the general public against buying and holding dollars unnecessarily, saying the interbank rate was currently stable.

The rupee closed flat at 124.50 against dollar in the kerb market, after hitting an all-time low of 125 on Wednesday.

Zafar Paracha, secretary general ECAP, said remittances coming to Pakistan should be sent via formal channels using exchange companies. “This would improve the foreign currency reserves of the country,” Paracha said. He said the remittances sent through the formal channels would fall under white money as the receiver would get tax rebates by showing the receipts to tax authorities.

“However, the money sent home by using unofficial channels like hundi/hawala makes the hard earned money into black money and ultimately will be impossible for the people to answer tax authorities,” The ECAP official said.

He also advised general public to make foreign exchange deals through licensed exchange companies and get receipts of each transaction instead of dealing with the illegal and unauthorised currency dealers.