The dwindling Rupee in the market has gained some flesh after around one percent recovery against Dollar. It has recovered to Rs.112.20 against Rs.113.50 as on 8th January. The appreciation of the value of Rupee came amid the verbal withdrawal of recent notification by State bank of Pakistan. The notification had restricted the supply of Dollars to the certain percentage.
It was notified to the dealers, that only 35% worth of US dollar can be imported in air travel against the export value of other mediums of exchange. Other 65% shall be acquired via appropriate financial institutions i.e. Banks.
Before the promulgation of notification, dealers used to import 100% US dollar against the value of other currencies. They use to export currencies against the import of greenbacks while traveling to other countries.
Exchange companies association expressed their concern, that due to import restriction, supply has reduced by 65% upfront.
When talking about banks, General Secretary Association of Exchange Companies, Zafar Paracha said that banks are consuming time to supply greenbacks, in contrary to the convenience when we are importing. As the banks are off on weekends, the rate of Pak Rupee Against US Dollar reached Rs113.50 from earlier at Rs111, as the supply was hindered badly.
Considering this looming situation, State bank has assured the dealers that it will reinstate the previous policy helping recover the position of Pak Rupee Against US Dollar.
The import of dollars reaches an average of around $7million and its not yet sufficient to meet the overall need of the market, so the rest is adjusted via remittances from people living abroad and purchase of greenbacks from around 1200 sellers in the whole country, this is 100% import scenario.
The export of other currencies is kept under strict scrutiny by State bank and custom dept. and it can be only taken away from Lahore, Islamabad and Karachi airports, and import allowed only to the airport of Lahore and Karachi.