ISLAMABAD: On Friday (July 22), the dollar- rupee exchange rate further mounted close to Rs229 in the inter-bank, indicating that any time the greenback will surpass the level of Rs230 in the interbank. In the open market, the currency dealers are charging the value of dollar and other major foreign currencies according to the capacity of their customers.
In a briefing to cabinet on Thursday, Finance Minister Miftah Ismail said that the dollar market was under control and rupee will show recovery soon. However, the fact is that the dollar is totally out of government’s control and market forces are determining dollar-rupee parity on a daily basis amid depleting foreign exchange reserves. The reserves with the State Bank have fallen to $9.32 billion, from $10.6 billion a few weeks ago.
Meanwhile, FPCCI President Irfan Iqbal Sheikh told a press conference that a national security risk had emerged after a steep fall in the rupee value in recent weeks and if the flight of dollar was not contained, the country can face Sri Lanka-like situation.
FPCCI chief said importers were here and there in getting the dollar and a petrol crisis would emerge as banks were opening the letters of credit (LCs) at Rs242 for a dollar.
Highlighting the government’s non-seriousness, Mr Irfan said the government had yet to appoint a full-fledged State Bank of Pakistan (SBP) governor, while the acting SBP chief is not interested to meet with the FPCCI leadership.
As a result, commercial banks were enjoying a heyday by indulging in speculation about the exchange rate, which was evident from the forward buying of a dollar at Rs245, he said.
He urged the government to appoint a permanent SBP government in the next 48 hours and also fix rupee-dollar parity for the next 15 days to avert any serious economic meltdown.
