After the currency’s value cap was lifted on Wednesday, the dollar was trading at Rs243.
According to Zafar Paracha, general secretary of the Exchange Companies Association of Pakistan (ECAP), the authorized committee decided in a meeting today to keep the dollar-rupee parity for selling at 243. He mentioned that the dollar purchase rate was set by the committee at 240.60.
Before ECAP issued the news release, the dollar to rupee exchange rate was, however, reported as being above 250 on social media.
Exchange companies remove dollar cap
The ECAP took an important step yesterday, lifting the cap on the US dollar as of today (Wednesday), in an effort to stop the market’s rising “artificial” demand for the greenback.
The three rates at which the dollar is currently traded are those offered by exchange companies, the official rate set by the State Bank of Pakistan, and the black market rate.
Tuesday’s ECAP members’ meeting was followed by a statement from the organization in which it announced the removal of the US dollar cap due to its detrimental effects.
The association’s statement highlighted the effects of various rates and claimed that there was “artificial demand in the market” as a result of people buying dollars from us and selling them on the black market.
People made the decision to do this, which led to the transfer of business from official to unofficial channels, harming the reserves and resulting in losses for the exchange.
In a conversation with Geo.tv after the conference, Zafar Paracha claimed that up to 90% of the demand was “fictitious” because people were purchasing dollars legally and then selling them to shady dealers.
The dollar would be exchanged at a rate that was close to the black market rate of Rs254-Rs257, Paracha continued, despite the fact that market forces will determine exchange rates.
I am hopeful that things will move in a better direction, Paracha said in response to the question of whether he thought Finance Minister Ishaq Dar would lift the dollar cap