KARACHI: The Chairman of Exchange Companies Association of Pakistan (ECAP), Malik Muhammad Bostan Friday said the removal of cap on the exchange rate will bring stability in the market and eliminate the rate difference in the interbank and the open market.

He said it was a major demand of traders particularly exporters of so that they can initiate export and import business at market-determined exchange rate because a huge amount of $8 to $10 billion of export proceeds is lying abroad and exporters were reluctant to bring a lower exchange rate. “In the current economic situation it was a right decision to remove the cap on exchange rate,” he added.

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Talking to media, Bostan said the interbank rate has closed at Rs 265 to the dollar on Friday, while the dollar rate in the open market is also between Rs 265 to Rs 268.

Similarly, the Hundi/Hawala market is ranging between Rs 270 to Rs 275, thus the difference of Rs 30 has reduced significantly and now it stood at Rs 2 to Rs 5, he maintained.

If the gap is further reduced, there will be no reason to bring dollars to Pakistan through illegal channels, he said and added that “when dollar inflows will come, our country will be saved from default.”

Copyright Business Recorder, 2023