Photo: FileKARACHI: Officials of State Bank of Pakistan on Monday expressed concern over the rising value of dollar in the open market but ruled out the possibility of a fall in the rupee's value, said sources.
In a meeting, held earlier today, with owners of foreign exchange companies, SBP officials said the difference between open market and interbank rates for dollar should not widen.
However, the officials said the central bank will intervene and supply dollars to the market when the need arises, added sources.
The difference between interbank and open market rate for the foreign currency is presently over rupees three per dollar.
Last month, on March 29, the US dollar rose by 70 paisas, trading at Rs116.5 in the open market. According to Forex Association President Malik Bosan, the US dollar rate was rising due to higher demand. As a result, the Euro had also increased by 30 paisas, trading at Rs143.3.
The dollar rate had been on a rising trend in the week, when on Tuesday it rose to Rs115 in the interbank foreign exchange market at the close of business. The 4.51 percent fall in a single day had unsettled the market and was the highest recorded depreciation in the currency’s value since 2008.
The surge in dollar’s value had been attributed to Pakistan’s reliance on imported goods.
The country’s trade deficit has stood at almost $20 billion in the past eight months, according to statistics issued by the State Bank of Pakistan (SBP). Pakistan’s imports amount up to $35 billion dollars while the exports stand at a meager $16 billion, leaving a huge gap between the payments received and made.
The SBP had attributed the rupee’s depreciation, which it said it closely monitored, to market forces.
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