Economics & Business

Uncertainty means reason of rupee decline: SBPG

KARACHI: Governor State Bank of Pakistan Dr. Shamshad Akhtar said decline in the rupee value is mainly due to uncertain political situation and added this includes the declaration of emergency in the country on November 3 and then the recent elections. She expressed the hope that the decrease in the value of the rupee would soon be controlled and there will be no adverse effects on the economy of the country. Talking to Geo News, Dr. Shamshad Akhtar said fluctuations in the foreign exchange rate were something usual and said that exchange rates kept changing in countries the world over.

Dr .Shamshad Akhtar said the State Bank was closely monitoring the decrease in the rupee value and was in a position to take appropriate steps. It is a general tendency that people get panicky over such decrease and start purchasing dollars whenever there is any decrease in the rupee value. Actually, it is necessary that we should deeply assess the reasons behind this situation. The decrease in the rupee value is mainly due to uncertain political situation. This includes the declaration of emergency in the country on November 3 and then the recent elections.

Another factor that adversely affected our economy was the hike in the prices of oil. Yet another reason is the unexpected expenditure of $2.6 billion we incurred on the import of food items. She pointed out that the foreign exchange companies were involved in an irresponsible manner. She said the State Bank had pumped $250,000 into the market so that there was no shortage of dollars in the open market, but the exchange companies had started transferring amounts out of the country, which was against the currency rules and regulations. She said the State Bank did not see the situation as hopeless, and apprehending the situation in advance, held the foreign exchange reserves to meet any untoward situation.-SANA

About the author

Rubab Saleem

Rubab Saleem is Editor of Pakistan Times

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