KARACHI: The State Bank of Pakistan (SBP) on Monday held an emergency meeting with the currency dealers to check rising dollar prices in the open market.

The Exchange Companies Association of Pakistan (ECAP) in press statement state that it supported the SBP’s the measures to improve dollar supplies to bring down dollar rates.Within a week, the dollar has appreciated by 2.2 per cent against the rupee. On Monday, the greenback traded between Rs118 and Rs118.30 in the kerb market. The dollar is selling around Rs2.70 higher compared to inter-bank market rates.

High demand and short supply of dollar has been pushing up its rates in the open market. Dealers said general public is not selling their dollar holdings while the import of the currency has drastically reduced.

Due to falling reserves, the SBP is not in a position to offer dollars to the open market to bridge the gap between supply and demand. Previously, the central bank used to provide dollars to improve supply for stabilising exchange rate.

According to the press release, the SBP claimed that there was no shortage of dollars and the supplies of cash are available in any quantity with SBP and exchange companies. This claim was contrary to the market situation where dollar is a rare commodity.

The SBP advised the buyers to refrain from the speculations and rumours that will bring them losses while ECAP General Secretary Zafar Paracha ensured the regular supply of dollars in the market.

Published in Dawn, April 24th, 2018