PKR 243 was the dollar’s open market price when ceiling was lifted.
The authorized committee voted in a meeting today to maintain the dollar-rupee parity for selling at PKR 243, according to Zafar Paracha, general secretary of the Exchange Companies Association of Pakistan (ECAP). The committee has set the dollar purchase rate at 240.60, he noted.
However, the dollar to rupee exchange rate was cited on social media at above 250 before ECAP released the news announcement.
A day ago, the ECAP made a significant step, lifting the cap on the US dollar as of today (Wednesday), in an effort to halt the market’s increasing “artificial” demand for the greenback.
The State Bank of Pakistan’s official rate, the rate offered by exchange businesses, and the black market rate are the three rates at which the dollar is currently exchanged.
Following a meeting of ECAP members on Tuesday, the association released a statement in which it announced the removal of the US dollar ceiling due to its negative impacts.
People Buying Dollars
The association’s statement highlighted the impact of various rates and stated that there was “artificial demand in the market” as a result of people buying dollars from us and selling them on the grey market.
People chose to do this, which caused the company to move from legal to illegal channels, harming the reserves and causing losses to the exchange businesses.
The organization gave an explanation for why the cap was removed, claiming that once the dollar was let to trade at market value, consumers would immediately switch from the grey market to the authorized channels.
Zafar Paracha told Geo. TV in a chat that followed the conference that up to 90% of the demand was “fictitious” because individuals were buying dollars through authorized means and selling them to shady dealers.
“By taking this action, we hope to show individuals how much their money is actually worth. The market will benefit as the supply of dollars rises and the demand for them declines.”
In spite of the fact that market forces will set the exchange rates, Paracha said, he anticipated that the dollar would be exchanged at close to the black market rate of Rs254–Rs257.
When asked if he thought that Finance Minister Ishaq Dar will lift the dollar restriction, Paracha responded, “I am hoping that things will proceed in a better path.”
