By Muhammad Luqman
Pakistan’s Rupee further weakened on Tuesday with the value of the US dollar hitting a new high of Rs115.50 in interbank trading.
Currency dealers have termed the government’s commitments to foreign monetary bodies as the major cause of nose-diving of Pak Rupee. The value of greenback also increased by Rs5.40 in the open market, according to media reports.
The State Bank of Pakistan (SBP) held rising demand for dollars responsible for the rise in the value of the American Currency, claiming that it is closely monitoring the situation.
General Secretary Exchange Companies Association Zafar Paracha said that the USD was being sold and purchase at Rs116 and Rs115 respectively.
He claimed that foreign loans, the government’s unannounced commitments to international bodies and corruption are responsible for the lower value of the rupee.
Paracha, speaking about corruption with respect to fluctuation in the dollar-rupee exchange rate, alleged that those with advance knowledge of the changing value were able to earn money off the adjusted rates.
He strongly criticised he drop in the value of the rupee, saying that it would pave the way for inflation, lesser foreign investment in the country and the use of illegal means for transferring money.
Given that Pakistan is set to be placed on the Financial Action Task Force’s grey list in June, it is not the right time to devalue the rupee, he said, asserted that all regulations which facilitate illegal trading should be amended.
Trade bodies have also expressed concern over the steep increase in the value of US Dollar vis-à-vis Pakistan Rupee. The Lahore chamber of Commerce and Industry has demanded of the State Bank of Pakistan to control rapid surge in dollar price through strict measures.
“Inter-bank US Dollar rate is ringing alarming bells and calling for immediate attention of State Bank of Pakistan to avoid economic crisis,” Acting President LCCI, Khawaja Khawar Rashid said.