Exchange companies asked to keep rates at rational level

The State Bank of Pakistan (SBP) Monday asked exchange companies to keep the exchange rate at a rational level. The State Bank called an urgent meeting of Exchange Companies at SBP head office on Monday to discuss exchange rate, which is volatile in the open currency market for the last few days.
The meeting was chaired by Arshad Bhatti Executive Director Foreign Exchange and attended by Malik Muhammad Bostan President Pakistan Forex Association of Pakistan and several other representatives of exchange companies. During the meeting, executive director State Bank expressed concern over the increasing exchange rate and said that there is no justification of increase in US dollar rate in the open currency market, when sufficient stocks are available.
Malik Bostan informed the exchange rate was increased due to rumors of devaluation of Pak Rupee. He informed that exports of currencies has also declined to $3 to $4 million in September compared $7 to $8 million in August due to rising demand of greenback. He said that during August exchange companies surrendered some $4 million in the interbank that increased the stocks of the country''s foreign exchange reserves.