governmental action against dollar smuggling
KARACHI: The government has started a broad crackdown on people and organizations involved in money laundering, hoarding, and organized crime cartels that have been severely damaging the country’s economy.
The crackdown on currency smugglers has led to an impressive 3.5% increase in the value of the Pakistani rupee relative to the US dollar, representing a gain of Rs11 in a single day. On Wednesday, the exchange rate reached Rs312 against the dollar. A side effect of this recovery was a considerable drop in gold prices of 4.5%, or Rs. 10,500, which brought the price of gold in Pakistan to Rs. 222,300 per tola (11.66 kg).
According to official sources, significant policy changes are forthcoming and will change how commodities and currencies are traded. They made it clear that such actions would not be accepted. governmental action against dollar smuggling
According to the Exchange Companies Association of Pakistan (ECAP), reports suggest that currency smugglers have hidden their operations in response to the crackdown, which has allowed the Pakistani rupee to recover nearly 5%, or Rs16, in just two days. Caretaker Interior Minister Senator Sarfaraz Bugti tweeted about the commencement of a statewide crackdown on smugglers, initiated under the directions of Prime Minister Anwaarul Haq Kakar.
The local currency held close to its record low of Rs307 against the US dollar from the previous day on the interbank market, where importers and exporters are major players. According to State Bank of Pakistan (SBP) figures, the value of the rupee increased marginally by 0.04%, or Rs0.12, to reach Rs306.98 versus the US dollar. The currency may stabilize at its current level in the short term, according to the range-bound trading activity in the interbank market.
Published in EDP BLOGS on September 07,2023.
