THOUGH banks and currency markets face no fear from the change in the White House, they do concede that decisions and incidents are taking place at a pace which is keeping them alert. The travel ban did disturb them, but the court action calmed them down, they say.

“Why fear? There is no negative sign from the US. Any talk of misplaced fear may actually damage our credibility,” warned a senior banker. However, generally speaking, bankers avoided discussing concerns arising out of a possible action against Muslim countries. All they stressed was the fact that banks in Pakistan were not facing any hindrance.

Pakistani banks, they said, were never charged of money-laundering though the country had to face tough vigilance from global agencies. There were issues with just one bank and it is no more on the country’s banking list. The currency dealers also shared the bankers’ sentiment.

Talking about the recent decline in remittances from the US, the bankers said it was an extension of the trend that started a couple of years ago. The remittances declined by 9pc in the first seven months of the current fiscal year. The US happens to be the third-largest source of remittances for Pakistan. Bankers said if anything goes wrong in relations with the US, exports, not remittances, will be the first to take the hit.

“Pakistanis working in US may have their fears, but we don’t expect any major change like it happened in the aftermath of 9/11,” said Atif Ahmed, a banker dealing with remittances and currency exchange. However, he pointed out that any sanction on Pakistan could freeze the country’s foreign dealings since banks keep most of their dollars in their foreign branches, while the State Bank invests most of its reserves in the US. “But we think it will never happen,” he hastened to add.

The currency dealers, on the other hand, found the current scenario positive for the dollar as the currency has gained against the euro and the British pound. Forex Association of Pakistan President Malik Bostan said that since the change in the White House, all major currencies had lost weight against the greenback. The dollar may gain against the rupee in the interbank market, but for State Bank’s intervention which, he said, was an artificial value.

Why the world is on edge

• Policies are anchored in the past more than the future.

• Unpredictability.

• Lack of respect for the rule of law.

• Fanning the religious divide.

• Hurting globalisation.

• Diminishing the value of diplomacy.

• No respect for nature and media.

Published in Dawn, February 19th, 2017

Opinion

Editorial

‘Source of terror’
Updated 29 Mar, 2024

‘Source of terror’

It is clear that going after militant groups inside Afghanistan unilaterally presents its own set of difficulties.
Chipping in
29 Mar, 2024

Chipping in

FEDERAL infrastructure development schemes are located in the provinces. Most such projects — for instance,...
Toxic emitters
29 Mar, 2024

Toxic emitters

IT is concerning to note that dozens of industries have been violating environmental laws in and around Islamabad....
Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...