Therefore, the Exchange Companies Association of Pakistan (ECAP) has requested the State Bank of Pakistan (SBP) for permission of sale of currencies to commercial banks to avoid shortage of the greenback in the country.
A delegation of the Exchange Companies Association of Pakistan (ECAP), headed by its chairman, Malik Bostan, met the State Bank officials at the SBP head office to discuss the recent developments in the currency market.
During the meeting Malik Bostan informed the officials that there were some reports that Dubai had been considering suspending flights operation from different countries, including Pakistan, due to crononavirus.
The suspension of flights to Dubai would create a new challenge as the exchange companies would not be able to import US dollars against the export of permissible currencies, he said.
"Daily some 10-12 million dollars worth of different currencies, including the Saudi riyal, dirham and pound are being surrendered at exchange companies' counter and these currencies are being exported to Dubai with permission of the SBP to import dollars," Bostan said and added that the export of these currencies will discontinue if airlines operation to Dubai was suspended.
The ECAP has requested the SBP to allow the banks to purchase these currencies from the exchange companies against the dollar and Pak Rupee to ensure the continued supply of the greenback in the domestic market.
Currently, a large number of people are selling foreign currencies due to attractive rates and the additional currencies should be used for building up the country's foreign exchange reserves, he added.
He said that the SBP officials have assured full support to the exchange companies and asked for a formal request for approval of this proposal.
Bostan said that recent appreciation of dollar against Pak Rupee is temporary and exchange rate will come down in the coming days.