Malik Bostan Denies Exchange Companies’ Role in Keeping PKR/USD Volatile

Exchange companies have nothing to do with the volatile exchange rate and completely support state efforts to curb the black market, according to Chairman Exchange Companies Association of Pakistan (ECAP) Malik Bostan. Addressing reports that the government wants to shut down exchange companies, Bostan said that these reports have caused fear in the industry and categorically denied allegations that ECs are involved in black marketing of US Dollars. All exchange companies are working with the government and the Army to keep the exchange rate stable, he added. Bostan reiterated support for the government and declared stringent measures against exchange companies that are caught engaged in black currency trade. ECAP will never support such illicit activities, he remarked. According to the ECAP chairman, the rate of the rupee/$ rate has dropped from 330 to 296 in the open market and 297 in the inter-bank market since the nationwide crackdown against black market agents. He maintained that the rate will drop further and reach 250 in the coming days. Bostan also mentioned exchange companies are daily relinquishing $15 million in interbank and that this figure will rise to $20 million in the coming days. Overall deposits into the interbank will surpass $400 million by the end of this month, he added.