KARACHI: State Bank of Pakistan Governor Ashraf Mahmood Wathra has urged foreign exchange companies to play their role in strengthening rupee against US dollar in the open market.
The SBP Governor, in a meeting with the representatives of the Forex Association of Pakistan (FAP) here on Tuesday, expressed concern over the increase in US dollar exchange rate to 108.60 in the open market, which is nearly four rupees higher than the inter-bank rate.
He stressed the foreign exchange companies to play their part to bring down dollar rate in the free market.
SBP Deputy Governor Saeed Ahmed, Senior Executive Director Muhammad Ali Malik and Executive Director Irfan Ali Shah were also present.
FAP President Malik Bostan explained that there is demand of 10 million US dollars in the market as against the supply of five to six million dollars, which include workers' remittances and cash foreign currency.
This situation is pushing up the dollar's rate in the free market, he maintained.
Malik Bostan apprised the SBP Governor that commercial banks are not providing them cash dollar notes, which is causing shortage of dollar.
The SBP Governor said if the commercial banks do not provide cash dollar note, foreign exchange companies can directly get dollar from the Central Bank.
SBP Executive Director Muhammad Ali assured the forex association of action if any commercial bank does not provide dollar to foreign exchange companies or client.
Malik Bostan appealed to the SBP Governor to grant two-month exemption of the condition of surrendering 10 per cent of dollars to inter-bank market out of the dollars brought in the country by forex companies against the export of the foreign currency.
This step would help increase supply of dollar in the market, he added.
He also assured the SBP Governor said dollar exchange rate in the open market would soon come down from 108 to 106.
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