The members of Exchange Companies Association of Pakistan held a meeting with the Director of State Bank of Pakistan (SBP), Irfan Ali Shah.
The meeting was told that the Governor SBP had said that the central bank will not allow market forces to decide the currency rate. The SBP will monitor currency movement in interbank and open markets.
The SBP has not free floated the currency and the rate to be decided by supply and demand. The SBP will take action against speculators.
Exchange Companies Association of Pakistan (ECAP) Chairman Malik Bostan told the meeting that after May 15, 2019, the exchange companies had surrendered $300 million to banks. In the next three months exchange companies plans to deposit $1.0 billion.
Malik Bostan asked people of Pakistan to invest in Pak rupee instead of US dollar to strengthen the local currency. "Our main motive is to sell foreign currency to strengthen the local currency. We are asking general public to sell their dollars, riyal and other currencies'' holdings."
He said, in 2003 one dollar was equal to 16 lakh Turkish lira while currently one dollar is equal to 7 lira. He appealed to the people to sell dollars and said if people will continue selling dollars, the rupee-dollar parity will come down to Rs 140.
He was expecting that the IMF programme will be approved on July 3, 2019. Inflows of $12 billion are expected in next three months as an agreement of $3 billion with the Asian Development Bank, $2 billion with the Islamic Development Bank and the World Bank would be finalized. The country''s foreign exchange reserves will increase and Pak rupee will strengthen.
He asked the government to impose ban on import of luxury items in Pakistan. The implementation of decisions taken in Shanghai Forum of regional trade in local currency will also help strengthen local currency.
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