Exchange Companies Association of Pakistan Chairman Malik Bostan has clarified that the recent appreciation in the value of the United States dollar is organic and not a matter of concern.
Bostan said there was no reason to worry even though the US dollar reached Rs287 in value on Tuesday. He added that there was ‘real’ demand for the greenback in the market.
He said that companies were using dollars to open letters of credit (LCs) for their businesses which is leading to more demand for the dollar.
Bostan said that the country’s foreign exchange reserves are slowly increasing and Pakistan would soon have a current account surplus.
However, he said that the real value of the dollar was still around Rs250.
The value of the dollar has been on the rise in recent days once again. The value had reached past Rs300 earlier this year but started falling after the government started cracking down on smuggling and hoarding.
