Open currency market observed volatility Saturday due to sudden and massive sale of US dollar by general public. Forex Association of Pakistan (FAP) President Malik Bostan told Business Recorder that for the last two days, most of customers come to exchange companies' counters for sale of the US dollar instead of buying. Massive and unexpected sale of greenback also pulled down exchange rate in the open currency market, he added.
As the interbank was closed on Saturday, the currency market was volatile and exchange companies were buying US dollar at different rates ranging from Rs 120 to Rs 123. The greenback was selling at Rs 124 to Rs 125. "US dollar rate in open currency market is likely to settle on Monday after opening of interbank market," he said.
The US dollar selling trend was started on Friday evening and continued Saturday. Some 99 percent customers arrived for sale of the dollar, while less than one percent were seen buying US dollar, he maintained. He said there are various reasons behind the sale of US dollar in open currency market and the SBP's restriction on currency movement is one of them.
With effect from July 24, State Bank restricted Exchange Companies for movement of Pak rupee between the cities through company's own transportation. The SBP has also asked ECs for proper documentation of inland currency transportation to further strengthen the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulatory requirements, he added. "After the SBP's restrictions on currency movement, illegal money changers are facing difficulties in continuing their business, secondly, public confidence has been restored after the PTI victory with majority seats," he added. Bostan said Saturday alone saw, approximately $3 million arriving in the system compared to average one million dollars on a daily basis.
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