KARACHI: The currency dealers have unanimously decided to stop artificially keeping rupee overvalued against US dollar in open market and let the rupee-dollar exchange rate depreciate to its actual value.
Speculations suggest rupee could gradually devalue to the level of black currency market in a couple of days.
The domestic currency was available at Rs250-260 per US dollar in black market these days while the dealers had artificially maintained rupee-dollar exchange at Rs238 till Tuesday.
“The association has decided to remove cap on rupee-dollar exchange rate,” Exchange Companies Association of Pakistan (ECAP) President Malik Bostan said in audio and video messages after chairing a zoom meeting on Tuesday.
“The move would help eliminate black currency markets, increase flow of foreign currencies to the dealers and available to public (for international travelling, education and hospital fees and etc.”
He said dealers had voluntarily decided to cap the exchange-rate in the national interest. The decision, however, resulted in black currency market that appeared more damaging to the nation.
“People were buying dollars from open market (at Rs238) and selling in black market (at Rs250-260), making it a business to mint profit,” he said, adding no one was coming to the dealers’ counters to sell foreign currency which resulted into drying up supplies on the other hand.
ECAP General Secretary Zafar Paracha said the decision to remove cap on the exchange-rate would help eliminating the black market and bring back the foreign currency inflows into the formal system from illegal one.