KARACHI: The Union of Small and Medium Enterprises (UNISAME) has said the proposal of President Asif Ali Zardari for currency swap with Islamic Republic of Iran will boost up trade as it will resolve the problems faced by Pakistani exporters.
President UNISAME Zulfikar Thaver said due to the embargo imposed on Iran, Pakistani exporters were compelled to ship goods through UAE to Iran as letter of credits of Iranian banks were not negotiated by Pakistani banks, this curtailed the trade to and from Iran as Pakistan is linked to the US Dollar and trade through an intermediary proved costly and involved maneuverings.
The agreement between Iran and Pakistan to swap currencies is a wise decision and should have taken place long ago nevertheless it is a very positive move and the Presidents of Iran and Pakistan both deserve applause for having taken this decision which will make them independent in terms of debt adjustment for import and export to one another comfortably both in the private and public sector, he also said.
Thaver said this is a very pragmatic decision and this system may be adopted with other countries as well as the US Dollar is in turmoil and although weakening in international markets it is still maintaining its position in Pakistan and ideally needs to be corrected and floated accordingly to let it reflect its true value.
Copyright PPI (Pakistan Press International), 2011
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