Malik Bustan, Chairman of the Pakistan Forex Exchange Association, has expressed concerns about the ongoing crackdown on currency exchange. He warns that if the crackdown persists, the value of the dollar may increase significantly.
The Role of the Army Chief: Bustan acknowledges the efforts of the army chief in taking on responsibilities typically handled by the civilian government. He believes this crackdown has had positive effects on various economic aspects, including reduced sugar prices and potential reductions in electricity and petrol rates.
Impact on Dollar Exchange Rate: Bustan highlights the continuous decrease in the value of the dollar. He suggests that if the crackdown against smuggling operations continues, the dollar’s value could surge to as high as Rs 250.
Increased Supply of Foreign Exchange: One notable outcome of the crackdown is the increased supply of foreign exchange. Exchange companies have witnessed a significant rise in daily dollar sales in the interbank market, reaching $15 million, compared to the usual $5 to $10 million.
Expectations for the Future: Bustan anticipates further growth in daily dollar sales in the interbank market, possibly reaching $20 million per day. Additionally, he expects over $500 million to be surrendered to the interbank market in the coming month.
Protecting Currency Changers: Bustan emphasizes the importance of safeguarding currency changers and preventing harassment. He notes a decline in clients due to data collection by government agencies. To address this, he proposes the creation of a portal for dollar sellers, providing them with registration numbers and a complaint system to ensure smooth transactions.
Preserving the Success of the Crackdown: The Chairman stresses that preventing currency changers from turning to the black market is crucial to the success of the ongoing crackdown efforts led by the army chief.