October 12, 2007	Friday	Ramazan 29, 1428

KARACHI, Oct 11: Despite billions of fresh currency notes issued by the State Bank, black-marketing of fresh notes is going on with very high margin up to 10 per cent in the city.

The State Bank had announced on first of this month that the Bank has printed Rs24 billion to meet the demand of fresh notes on the eve of Eid.

The SBP said special arrangements were made at all offices of the SBP BSC for issuing one packet each of Rs10 and Rs20 denomination fresh currency notes to a person from their counters.

However, the market, specially the traditional Bolton Market, was filled with fresh currency notes of all denominations.

When asked several branches replied that fresh notes were being issued and anyone can get it.

But rush of people in the currency market and high margin of 10 per cent showed that not all people were able to get fresh notes they needed.

The buyers were getting fresh notes of R100 (Rs10 denomination) for Rs110. Buyers said banks were not giving them fresh notes. However, others said the banks did not give them required amount of fresh notes.

The demand was high and bank branches were providing a limited amount.

Currency traders said they have been doing this business for decades and never felt problem to get the required amount of fresh notes from banks.

The central bank issued Rs23.8 billion fresh notes and took a number of measures to ensure transparent distribution of these notes across the country, particularly in far-flung areas, but open black-marketing of these notes in Karachi tells that far-flung areas would never get fresh notes.

The SBP BSC also supplied sufficient quantity of fresh notes to NBP Chest branches (where SBP BSC office does not exist) for onward supply to branches of commercial banks in remote areas.

The SBP had announced in the beginning of this month that a number of measures have been taken to curb black-marketing of fresh currency notes on the eve of Eidul Fitr.

The SBP formed monitoring teams to verify receipt of fresh notes at recipient bank’s branch as well as its further destination and delivery to other branches.

The monitoring teams were given the task of examining distribution of fresh notes to the general public by commercial banks.

The SBP had warned that commercial banks would be strictly dealt with in case of any violation of its instructions regarding issuance of fresh notes to the general public.