Exchange companies stressed to play their role in stabilizing exchange rate in Kerb market

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ISLAMABAD, Dec 28 (APP): Ashraf Wathra, the Governor State Bank of Pakistan on Monday stressed the exchange companies to play their role in stabilizing the exchange rate in the Kerb market.

Ashraf Wathra stated this while chairing a meeting with the representatives of the Exchange Companies at Karachi, a statement of the Central Bank issued on Monday said.

During the meeting, issues relating to prevailing exchange rate in the Kerb market, performance of exchange companies and the role of their association came under discussion.

The Governor SBP highlighted different regulatory measures recently taken for providing opportunities to exchange companies to expand their businesses.

He, however, stressed the exchange companies to play their role in stabilizing the exchange rate in the Kerb market.

The exchange companies were reminded that strict regulatory action will be taken against those exchange companies who do not ensure meticulous compliance of the applicable rules and regulations.

While assuring the exchange companies to address their genuine grievances, the Governor SBP apprised the participants that work is already underway in requiring the importers to produce proof of payment at the time of Customs clearance of their goods.

The Governor emphasized that there is adequate supply of foreign exchange in the market to meet the needs of the various stakeholders; hence the recent fluctuation of the exchange rate in the kerb market is not justified.

He further stressed the need for curbing speculative trading which exerts undue pressure on the exchange rate.

The gross reserves of SBP have touched the all time high of USD 21 billion.

He also emphasized the need to make the association of the exchange companies more effective in order to address related issues in a more coordinated manner.