Exchange companies propose SBP for Re1 on each dollar remitted

Exchange companies propose SBP for Re1 on each dollar remitted

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KARACHI: Exchange companies have asked the State Bank of Pakistan (SBP) to provide Re1 on each dollar to the remitter from abroad.

On Monday, the SBP scheduled a meeting with the exchange companies to discuss the present exchange rate scenario that presents a volatile situation in the open market.

The State Bank already provides air time equal to Re1 to those who remit money through their mobile wallet account.

“It was a proposal from exchange companies and the SBP will look into the matter to take a decision regarding this,” said SBP spokesperson, adding that no decision has been taken yet.

Exchange Companies Association of Pakistan’s General Secretary Zafar Paracha said the State Bank has agreed to consider their proposal for providing Re1 per each dollar to the remitter. “It will reduce the illegal transactions of money. Hundi and Hawala system usually provide Re1 or Rs2 per dollar above the market rate,” he added.

The open market recently witnessed large fluctuations as the dollar was traded as high as Rs119.50 before falling back to Rs117.30 within three days. It eroded the investments of many speculators while at the same time destabilized the market.

It is difficult to estimate exchange rate for the next few hours which why exchange companies across the country as well as cities like Karachi are selling dollar at different rates.

The massive fluctuations during the last week also reduced the demand in the market despite continued buying for Umrah.

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