Malik Bostan President Pakistan Forex Association of Pakistan has said that the dollar would decline further against the Pakistani Rupee in the upcoming Eid season.
Talking to a private channel, Bostan said that he expects record remittances in the coming months due to upcoming Eids which will further weaken the dollar. “Record remittances come during Eid (i.e. Eid ul Fitr and Eid ul Adha), so I believe that US Dollar could decline below 150 reaching 145 against PKR,” said Bostan.
On Monday Pakistan Rupee remained unchanged in the interbank for both buying and selling against USD over last week’s rates closing at 152.70 and 152.80 respectively. In the open market, PKR remained unchanged as well for both buying and selling over last week’s rates closing at 152.80 and 153.30 respectively.
Bostan termed the ongoing decline of USD as a ‘great blessing’ saying that despite the crisis of coronavirus pandemic the foreign exchange reserves of Pakistan are strengthening.
Bostan said that the exchange companies have played a vital role in this regard. “Each month $300 to $400 million dollars are coming into interbank market through exchange companies which have led to the rise in foreign exchange reserves and strengthen the local currency,” he said.
“I believe that the rupee will strengthen further in the coming days,” he said
President Forex Association said that Overseas Pakistan has played a key part as well As per the State Bank of Pakistan (SBP) latest figures, remittances rose to $2.7 billion in March 2021, 20 percent higher than last month and 43 percent higher than March 2020. Cumulatively during July-Mar FY 21, remittances have risen to $21.5 billion, up by 26 percent over the same period of FY20.
Malik Bostan informed that Pakistan has become the fourth largest in terms of remittance inflows, with India at the top followed by China and the Philippines.
Bostan also lauded the role of State Bank’s Roshan Digital Accounts in enhancing dollar reserves.
“Some 10 million Pakistani work abroad and I believe that if only five percent of them open RDAs, which will translate into 500,000 accounts and an investment of $5 billion in one-two years, which will benefit Pakistan,” he said.