Tuesday, September 26, 2023

Exchange companies have surrendered 2 crore dollars, army chief’s appreciation for rate reduction

There are reports that foreign investment worth about 20 to 25 billion dollars will come to Malik Bustan

Exchange companies have surrendered 2 crore dollars due to lack of demand in the market.

In a statement, Chairman of Forex Association of Pakistan Malik Bustan has said that there are reports that exchange companies (ECs) have deposited 20 million dollars in the interbank market during the last two days because there is no demand in the market.

He said that the free market exchange rate has fallen below the interbank market after almost a year due to the actions of law enforcement agencies against illegal currency traders.

Malik Bustan said that all the credit goes to Army Chief Asim Munir who ordered strict action on the request of exchange companies and formed a task force to stop black marketing and illegal trading of currencies.

Chairman Forex Association said that for the last three days, the task force has been working aggressively against the illegal trading of currencies and the law enforcement agencies have arrested several criminals.

Malik Bustan said that due to this initiative of the state, exchange companies have surplus dollars as there are no buyers in the market, ECs are handing over surplus dollars to the interbank market.

He further said that during the last two days, ECs have handed over 2 million dollars to the interbank market, as a result of which the interbank exchange rate has decreased from Rs. In comparison, the exchange rate dropped to Rs 302 and there are no buyers in the market.

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Malik Bustan said that to avoid such evil acts in future, these elements need to be monitored and action should be taken on regular basis.

He also appreciated the government’s efforts to prevent smuggling and said that illegal trade is also a major cause of market volatility.

Chairman Forex Association said that the Special Investment Facilitation Council (SIFC) will also help bring more investment in the country, especially in the mining and minerals sector. Apart from this, there are reports that foreign investment of around 20 to 25 billion dollars will come. The inflow of these funds will further depreciate the exchange rate in the coming months.

General Secretary of Exchange Companies Association of Pakistan Zafar Paracha said that the confidence of investors has been restored by the Army Chief’s assurance of improvement in the economy.

He said that during the meeting with the business community, the Army Chief discussed all issues including corruption, foreign investment, smuggling, currency market.

Zafar Paracha said that a crackdown has been started against all smuggling, including goods and dollars, which is showing positive results. The crackdown has led to an improvement in open currency and interbank exchange rates, apart from a reduction in the prices of certain commodities.

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