KARACHI: Malik Muhammad Bostan, Chairman of Exchange Companies Association of Pakistan (ECAP), Tuesday said Exchange Companies (ECs) have no role in the volatile exchange rate. They are fully supporting the government’s action taken against the black market.

While expressing concern over reports that the government is considering closing exchange companies, Bostan said these reports have created panic in the exchange business.

“In this regard we have contacted the government and higher authorities on Tuesday and categorically rejected the allegations that ECs are involved in the black marketing of dollar,” he said.

He said that it has also made it clear that Exchange Companies have no role in the volatility in the currency market and fully support the government’s move and actions being taken against black marketers or illegal currency dealers, involved in black marketing of dollars.

Artificial appreciation of PKR to encourage imports: Pasha

“We are with the government and if any exchange company is found involved in illegal dealing, the government must take legal action against it. ECAP will not support such illegal activities at all,” he added.

Bostan said that all Exchange Companies are with the government and Pakistan Army and supporting the efforts to keep the exchange rate at a reasonable level.

Since the crackdown has started against the illegal currency dealers, the rate of dollar has reduced from Rs 330 to Rs 296 in open currency market and Rs 297 in inter-bank as the exchange company’s supply has increased after crackdown, he maintained.

The decline in dollar rate will continue and likely to reach Rs 250 in the coming days. However, the exchange company’s supply has increased since the Siya crackdown has started.

He informed that exchange companies are surrendering $ 15 million in inter-bank on a daily basis and will reach $20 million in the coming days. Cumulative surrender into the inter-bank will reach $400 million by the end of this month, he added.

Copyright Business Recorder, 2023