Currency smuggling

Dealers blame smuggling for shortage of dollars

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.

Currency smuggling

Feds seize $3 million from smuggling suspects

More than $3 million in cash destined for Mexico was found in two cars in Escondido Tuesday, the largest cash seizure ever made by U.S. Border Patrol agents in San Diego County, authorities said Friday.

Two men, one a citizen of Mexico, the other of the United States, were arrested on charges of smuggling U.S. currency in their separate vehicles.

“It was quite a significant seizure,” said Border Patrol spokesman Mark Endicott. Stacks of crisp $100, $20, $10 and $1 bills were confiscated.

An agent followed a speeding Kia Forte from southbound Interstate 15 to West Country Club Lane about 1:45 p.m. Tuesday and pulled over the driver. The agent suspected that the Kia was being driven in tandem with a Volkswagen Passat that raced off while the Kia was stopped, Endicott said.