Dollar reached Rs148 in open trading on Friday resulting in panic in foreign currency markets. Federal Minister for Information and Broadcasting Fawad Chaudhry said that “a full-fledged operation against dollar hoarding and speculative currency trade” is to be launched. Furthermore, the finance minister said that “rupee is in equilibrium” and “there is no reason for big devaluations”.
For a long time, the open market has been ignoring the assurances of the government. The central bank of Pakistan held the third meeting in five days on Friday with exchange companies heads. The aim of the meeting was to control the open market rate. It appears that like the previous meetings this too ended without any conclusion.
Forex Association of Pakistan President Malik Bostan said that it has been decided that just genuine buyers are allowed to buy dollars from the open market. But he said that there has been no discussion regarding any, impending crackdown.
The focus of the meeting was to supply dollars in the open market and decide the appropriate rates of selling. But the central bank did not spread its offer to provide dollars in order to meet the shortage of it in the market.
As per Mr Bostan the “genuine buyers” are described as those “travellers, students, pilgrims and people who need foreign exchange for health purposes”.
In response to the question as to how they will differentiate between genuine and fake buyers, Mr. Bostan said, “We will check their documents.”
Information Minister Fawad Chaudhry tweeted, “Government has directed FIA to launch a full-fledged operation against Dollar hoarding, and speculative currency trade the operation is being launched in coordination with State Bank and ministry of Finance.”
However, State Bank spokesman said that “we have not been officially approached” for starting any crackdown.