ECAP: US dollar to plummet to Rs250 soon

KARACHI:  The Exchange Companies Association of Pakistan (ECAP), following the standby arrangements from the International Monetary Fund (IMF), anticipated a gradual decline in the value of the US dollar against the Pakistani rupee to reach Rs270 initially and then further deprecate to Rs250.

ECAP Chairman Malik Bostan commented in response to Pakistani rupee’s decline against the US dollar on Monday.

The currency deprecated by 0.68% on Monday in inter-bank trading, settling at Rs279.8, a decrease of Rs1.9, as reported by the State Bank of Pakistan (SBP).

Bostan said that the current rise in the interbank rate of the US dollar is temporary and attributed this surge to the recent reopening of new import LCs (letter of credits), which has increased demand for the dollar.

“The situation occurred following a prolonged period of payment delays for approximately 6,000 import containers and the removal of import restrictions. The value of the dollar would stabilize once the current demand is met,” he said.

During the previous week, the rupee had appreciated by 2.91 per cent against the US dollar following the standby arrangement (SBA) with the IMF.

Meanwhile, Bostan lauded the government’s recent policies regarding inflation and said that the ECAP was keeping a keen eye on market speculation.

He expressed concerns regarding plummeted remittances and urged Pakistan to develop skilled workforce. “If skilled individuals are trained and sent overseas, the country has the potential to witness a monthly increase in remittances up to $4 billion,” he added.