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Forex firms advise govt to fix higher dollar rate to Rs240 to boost remittances

ISLAMABAD: The Exchange Companies Association of Pakistan today urged the federal government to fix the dollar-rupee exchange rate to around Rs240 to enhance remittances and end black-market of dollar in the country.

Association said that the increasing vulnerability of the rupee versus the
US dollar has widened inter-bank and open markets beyond 10 to 15 rupees as a
result of which people are using illegal channels to transfer foreign exchange
to Pakistan.

Zafar Paracha, secretary general of the association said, “ECAP has is
advised to fix the rupee/dollar exchange rate for export-import bills and
remittances.

This strategy will support the government to enhance remittances and end the
dollar’s black-marketing, he added.

On Tuesday, the dollar-rupee parity fluctuated around 228.50 rupees in the
inter-bank. However, in the open market, the dollar rate crossed 238 rupees
today. In black-market trading, the dollar-rupee exchange rate is above 245 rupees.

Paracha asked the federal government to announce Rs240 per dollar for
overseas Pakistanis and for inward remittance. He said that it was the only
viable option to increase remittances, reduce Hundi/Hawala, promote the official
channel, and eliminate the grey market.

Importantly, the foreign exchange reserves of the State Bank of Pakistan
have dropped to $4.3 billion _ the lowest level since 2014. Every week, the SBP’s
reserves are declining due to delays in the disbursement of IMF tranche and
financial assistance by some friendly countries.

Javed Mahmood
Written By

I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.

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