The decline in the value of domestic currency and the increase in the value of the dollar continues and the dollar has become more expensive...
The decline in the value of domestic currency and the increase in the value of the dollar continues and the dollar has become more expensive by 6 rupees 25 paise to reach a record level of 222 rupees.
As the day began on Tuesday, the dollar fell by 50 paise, where the dollar had closed at Rs 215, 20 paise the previous day.
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The increase in the value of the dollar continued even after that and in the Karachi interbank market, the dollar became more expensive by 1 rupee 75 paise to a record level of 217 rupees 50 paise.
Later, the decline of the rupee continued rapidly in the market and the dollar increased by 5 rupees 25 paise to a record level of 221 rupees in the Karachi Interbank Market, while after some time the value of the rupee further decreased by one rupee.
According to the Forex Association of Pakistan, the dollar rose by 6.8 rupees or 3.1 percent to 222 rupees at around 1 pm from the previous day's 215.20 rupees.
Saad Bin Naseer, director of MetsGoble, said that financial markets are in a frenzy and are buying dollars due to fears of a change of government in Punjab and the Center after the by-elections.
He said that the demand of importers has also increased due to concerns regarding obtaining money from the International Monetary Fund, friendly countries and bilateral sources.
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Apart from all these factors, Saad bin Naseer called the downgrading of Pakistan's rating from stable to negative by the American rating agency Fitch as the reason for the chaos in the market.
Chairman Forex Association Malik Bustan said that by justifying the political situation in the country, banks are speculating in the price of the dollar, which the State Bank should take notice of.
He said that the price of the dollar should be prevented from increasing unnecessarily in the market, the forward booking of the dollar should be banned immediately to end the monopoly of the banks to prevent a panic situation in the market.
It should be noted that the value of the rupee has decreased by more than 6 rupees since yesterday.
Khurram Shahzad, chief executive officer of investment firm Alpha Beta Core, also attributed the sharp fall in the rupee to the downgrade by Fitch and global trends.
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He said that the dollar is getting stronger in the global market compared to almost all the global currencies, Pakistani rupee is not an exception.
Apart from this, Pakistan's external account issues are yet to be resolved, the IMF is yet to be on-boarded and disbursements are yet to be completed, global rating agencies have given a negative outlook for the economy, he said. Therefore, it is an additional burden that is affecting the financial markets in general and the foreign exchange market in particular.
Shahzad urged all stakeholders to come together and devise a strategy to stop the fall of the rupee.
Exchange Companies Association of Pakistan General Secretary Zafar Paracha, however, disagreed with Saad bin Naseer and said that there is no demand for solar in both the open market and the interbank market.
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"It seems that it is one of the terms of the IMF that we devalue the rupee. If the rupee falls to the level of 225 against the dollar, we expect the government to intervene," he said. .
Zafar Pracha said that the Fitch report will further affect the value of the rupee.
He expressed regret that the government and state institutions are not making any effort to stop the fall of the rupee.
He said that political parties are only concerned with making or saving governments, no one is concerned about the country and the nation, all political parties should come together and make a one-point agenda keeping in mind the situation, the situation of Sri Lanka is before us. Is.
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He said that the government has to take steps for economic stability, including providing facilities to overseas Pakistanis to increase remittances and not providing facilities to elites and parliamentarians, otherwise it may be too late.
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