State Bank of Pakistan to support rupee

Karachi: The State Bank of Pakistan (SBP) on Monday decided to intervene in the open currency market to arrest the continuing depreciation of rupee against US dollar. The State Bank also assured the exchange companies about supply of dollars as per their demand.

Following a massive depreciation of rupee on open market, SBP called an emergency meeting of Exchange Companies on Monday to take some measures to arrest the slide of PKR against the greenback.

The greenback crossed Rs 90 on Monday and closed at Rs 90.30 against dollar, while during last one week the rupee had devalued by Rs 2.50 to Rs 90.30 to dollar. Continuous devaluation of rupee forced the regulator (SBP) to intervene and take some steps.

During the meeting, SBP expressed serious concern over rupee devolution and detailed discussion was made. In addition, several steps were also discussed to restrain the fall in rupee value. The SBP also announced to provide maximum support to the exchange companies to manage supply of US dollars.

It was decided that State Bank will supply dollars to the exchange companies as per their demand to manage the supply and demand gap in the open market.

It was also decided that intervention will be made through National Exchange Company of National Bank and Habib Exchange Company of Habib Bank, as other exchange companies had bad experience in the past.

Leave a Reply