In order to contain the pressure on the recent depreciation of Rupee against the Dollar, State Bank of Pakistan has allowed exchange companies to export permissible foreign currency without a certain limit, for smooth imports of Dollar in the country.
The decision was made by high ranking officials of SBP in its meeting, with the exchange companies’ owners, on examining the overall situation of Dollar demand and supply in the open market.
SBP has withdrawn its condition of allowing only 35% exports of permissible foreign currency for the imports of Dollar.
According to its notification:
“It has now been decided to allow Exchange Companies to import cash US Dollars against export of permissible foreign currencies without observing any limit and/or repatriate equivalent US Dollars through credit to their foreign currency accounts maintained with banks in Pakistan.”
It is pertinent to mention here that Rupee was under pressure by US Dollar in the interbank and open market. US Dollar’s value touched the level of Rs. 113 in the open market, which created a short-term panic.
According to Zafar Paracha, General Secretary Exchange Companies Association of Pakistan (ECAP), Deputy Governor SBP expressed his concern about increasing rates of US Dollar against Pak Rupee from 110.70 to 113.00
On the advice of Mr. Zafar Paracha, the Deputy Governor of SBP has withdrawn the restriction of 35% import of cash US$ against the permissible export of foreign currencies.
Zafar Paracha has given a firm assurance to the Deputy Governor, SBP for reducing the rate of US Dollar by Rs. 02/-.