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Open market and inter-bank exchange rate gap of dollar widens to Rs4 as $ sheds more tears

Like Bangladesh, the govt and State Bank of Pakistan should also identify banks involved in dollar’s manipulation for their vested interests.

ISLAMABAD: The gap of dollar-rupee exchange rate in the open market and inter-bank has widened to around Rs4 on Thursday as dollar continued to shed more value amid selling pressure.

The downfall of the US dollar continued on Thursday as the greenback further lost its value and worth against Pakistani rupee in the open market and inter-bank.

On Thursday morning (10am), dollar-rupee exchange rate in the open market fell to Rs216 from a day earlier value of Rs218, whereas in the inter-bank the exchange rate of dollar vs PKR fell to 220, losing about 1.91 rupees when compared to the previous day’s closing value of 221.91 rupees. Thus, a gap of Rs4 was recorded in open market and inter-bank trading of dollar on Thursday morning.

In the inter-bank and open market, value of dollar is being manipulated as it is kept low throughout the trading hours due to rush of sellers and the rate of dollar is increased a few minutes before the closing time. Thus, this practice is going on in Pakistan for the past many weeks due to banks and currency dealers policy to mint as much money as possible.

Interestingly, on Wednesday the government of Bangladesh has sought termination of chief treasury officers of six banks for their involvement in the manipulation of dollar and violation of Bangladesh’s central bank regulations which govern for the foreign exchange regime.

However, in Pakistan except the State Bank of Pakistan’s action against some currency exchange companies, the central did not take any major action against the banks which are manipulating dollar’s value for their vested interests. The State Bank of Pakistan must learn something from the Bangladesh’s experience and identify banks violating the foreign exchange regulations in the country.

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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