The rupee continued to show recovery in the interbank market on Monday, extending its gains against the dollar in the early morning session.
According to the Forex Association of Pakistan (FAP), the dollar was being traded at Rs218.45 around 9:50am, with the rupee appreciating Rs1.47, or 0.67pc, against the last session’s close of Rs219.92.
FAP Chairperson Malik Bostan attributed the rupee’s gains to exporters “bringing their proceeds into the country at a rapid pace”. This, he explained, was causing a decline in the dollar’s demand.
He also called for the dismissal of higher-ups at banks involved in the manipulation of the exchange rate and suggested that heavy fines be imposed on such banks.
“The record of their transactions should be checked and a fine of double the amount of profit they have earned should be imposed so that stta bazi (speculation) can be prevented in the future” he said.
Moreover, the FAP chairperson foresaw the rupee making further gains in the future, expecting the interest rate to remain stable or reduce.
The State Bank of Pakistan is expected to announce the new monetary policy today.
This will be the first monetary policy since the appointment of Ishaq Dar as the country’s new finance czar last month and Jameel Ahmed as the central bank’s new governor in August.
It is speculated that there will be no change in the interest rate given unprecedented inflationary pressures.