US dollar skyrockets by 12 rupees after price cap lifted

The US dollar has skyrocketed to over Rs252 against the Pakistani rupee in open exchange market after the price cap on greenback removed, reported 24NewsHD TV channel.

Dealers informed the TV channel on Wednesday that the US dollar broke all previous records and jumped by Rs11.75 against Pakistani rupee and was currently being traded at historic level of Rs52.50 in open market.

On Tuesday, the Exchange Companies Association of Pakistan (ECAP) had announced removal of price cap on exchange rate aimed at ensuring availability of the greenback in the market. It was decided in a meeting of the ECAP, chaired by ECAP President Malik Bostan and attended by Zafar Paracha, General Secretary, Haji Haroon, Haji Ramzan, Mureed Hussain and others.

The current situation of the open currency market was discussed in detail and it was unanimously decided to lift the cap on the dollar rate to ensure its availability in the market.

Instead of decreasing, the dollar rate is continuously increasing in the open currency market and even not available in the market. This led to the existence of a black market for people who needed dollars for travel, health and education purposes.

Bostan said as a number of people needed dollars, the black market was growing rapidly and the State Bank and ECs’ reputation was being damaged. In addition, there have also been complaints from customers that some employees of ECs are not giving dollars intentionally.

“We have informed SBP officials that the situation has changed and the cap imposed in the interest of the country has proved negative for the market. Therefore, the ECAP has decided to lift this cap on exchange rate and, ECs will remove this cap on Wednesday,” Bostan said.

In the interbank market on Wednesday, the US dollar concluded the day at Rs230.89 after gaining 49 paisas.

Interbank closing #ExchangeRate for todayhttps://t.co/yr6lhP3f28 pic.twitter.com/5ZUhSyy3L1

— SBP (@StateBank_Pak) January 25, 2023

 
Reporter Ashraf Khan