A sharp increase was witnessed in the price of US dollar, as it closed on Rs 117 on Wednesday. For the second time, the dollar reached a record high on the closing of the day. On March 20th, 2018 dollar reached Rs 117 and now it has again reached record high price in the open market.
Here are Pakistan’s open market Forex rates
As per the current dealers, this sharp decline in the value of rupee is concerning. Malik Bostan, President Forex Association of Pakistan said, “The demand for the dollar is high as undeclared money is being invested in the US currency.”
He said that after the amnesty scheme was announced the money that was used in property sector investment is now used in the currency market.
Bostan informed, “Both undeclared legal and illegal money is chasing the dollar.”
However, as per the Secretary-General of Exchange Companies Association of Pakistan, Zafar Paracha “The smuggling of currencies is very high these days as the illegal money has found an easy way for its whitening after the announcement of the amnesty scheme.”
He disclosed that other than the US dollar the currencies are quite expensive in the domestic market.
He said, “The cost of other currencies is almost equal to Rs117.50 per dollar in the local market, indicating that smugglers are buying heavily at a higher rate. ”
The volume of trading has gone down in the last couple of sessions, he added. When the government announced that a deal worth Rs 4 million or more demanded the revelation of sources, people have started investing in prize bonds and other schemes. Furthermore, investors have also started investing in gold.