SBP chief tells Dar rupee volatility has been controlled, exchange rate stable

State Bank of Pakistan (SBP) Governor Jameel Ahmad conveyed to Federal Minister of Finance and Revenue Senator Muhammad Ishaq Dar that the exchange rate has been stabilised after measures taken by authorities.

This was stated during SBP chief’s meeting with the federal minister at the Finance Division, said a statement released by the Ministry of Finance on Monday.

As per the statement, Dar and Governor SBP discussed measures taken for economic stability, recovery and development of the country. Moreover, coordination between the fiscal and monetary policy was also discussed in the meeting.

Ahmad said that as a result of continuous administrative efforts of the government and the policy measures of the SBP, the value of Pakistan’s rupee has been stabilised and exchange rate volatility has been curbed, read the statement.

On Monday, Pakistan’s rupee registered a minor gain against the US dollar, and settled at 221.66 after an appreciation of Re0.26 in the inter-bank market. This came after the rupee had remained largely stable during the previous week, hovering around the 221-222 level in the inter-bank market even as the US dollar strengthened against other currencies.

Meanwhile, the Governor SBP apprised Dar of various macroeconomic policy measures in line with the objectives of fiscal policy to achieve sustainable development. Ahmad said that the central bank remains fully committed to support the economic recovery process as per the policies of the present government.

Dar expressed satisfaction over the steps taken by the central bank for the economic development of the country, said the statement. He acknowledged role of the financial regulator in bringing back stability in the exchange rate and expressed satisfaction over the monetary policies pursued by the central bank, read the statement.

The finance minister further said that when the monetary policy is in sync with the financial policy, sustainable growth and stability can be achieved in the economy.

Last week, Dar initiated efforts to control volatility in the exchange market and keep the exchange rate at its real value.

The federal minister held meetings with banks and exchange companies to discuss the economic situation and issues related to the exchange rate.

During the meeting, the Minister of Finance warned of strict action against those institutions found involved in unlawful practices. He strictly asked banks and ECs to avoid manipulation of the dollar.