Currency Exchanges Deploy Security Guards Against Black Market Agents

Security has been stationed at currency exchange companies to crack down against black market brokers tempting buyers with higher US Dollar (USD) rates, according to Chairman of the Exchange Companies Association of Pakistan (ECAP) Malik Bostan. Speaking at a talk show on Tuesday, Bostan said security personnel had been deployed after a request was made to Chief of Army Staff Asim Munir and other authorities. Bostan supported the move, claiming that agents are offering higher dollar rates to clients of exchange companies, hurting their foreign currency supply and resulting in an interbank/open rate gap of up to Rs. 30 per USD. The ECAP chairman said that a crackdown on black market elements outside exchange company offices had taken place, but denied rumours that security personnel were stationed inside exchange company offices to watch the agents. He said that the staff entered the premises solely to inquire about the exchange rates at various counters. Bostan remarked unequivocally that the association had sought the formation of a security task force to take action against the black market players. He further added that the dollar traded in the open market for Rs. 317 on Tuesday and would fall in coming sessions. ECAP chairman’s comments come amid tumultuous times for the exchange rate. On Tuesday, the Pakistani rupee dropped to a new record low against the US Dollar, closing at 307.1. However, it is noteworthy that the gap between interbank and open market rates is shrinking. From 337 (undocumented) reported on Monday, the rates have gone down by up to Rs. 20 to as low as 320 and have since continued brief spikes to as high as 327. A few individuals on market watch have suggested that buyers are few, while sellers are anxious to cash in.