Currency smuggling
KARACHI: Smuggling of foreign currencies, particularly the dollar, has led to a short supply of the greenback in the open market.
As a result, the exchange rate hit the new high of Rs107.60-Rs107.80 on Wednesday, creating a gap of about Rs2.50 per dollar between open market and interbank rates.
In view of the emergency-like situation, the State Bank of Pakistan (SBP) called meetings with currency dealers twice in a week, which shows mounting pressure on the rupee arising out the smuggling of currencies.
Many reasons are being cited for the sudden rise in the open-market exchange rate. Some influential currency dealers believe that Dubai-based magnates are pulling dollars out of Pakistan. Currency smuggling was rampant a few years back, which put Pakistan at the top of the list of investors who stashed away their wealth in Dubai properties.
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