Several Banks Blamed for “Manipulation” in The Recent Fall of Rupee Against The USD

According to sources, the recent decline in Pakistani Rupee has been due to the manipulation by several commercial banks.

The rupee had been performing exceptionally well against the US Dollar for the last couple of weeks. However, suddenly there was a decline for two straight days and the value of Pakistani Rupee depreciated against the US Dollar.

Sources suggest that this two day decline was actually due to the manipulation of some commercial banks for personal gains. Some commercial banks alongside their stakeholders deliberately fabricated an increase in the Interbank dollar rates which led to a depreciation in the Pakistani currency. 

How do Banks Profit From This?

The banks deliberately increased the prices for their profits. They do this by boosting the price of dollars in the Inter-bank rates as they have numerous Letter of Credits from importers on hold. They delay several LCs (Letter of Credits) to create an artificial shortage which leads to an increase in the Interbank dollar rate. This increase in the rate was observed as the Inter-bank USD rate recently went up to Rs 282.

However, the banks are blaming the IMF for this increase while several sources suggest that these claims are baseless as there was no shortage of dollars because the market was continuously getting a good supply of dollars.

Regarding this news, the ECAP Chairman Malik Bostan said that proper action has been taken by the authorities and he hopes to see the rupee shine like this against the USD. He further mentioned that due to proper action by the government, the open market and Inter-bank rates have now stabilised. Check here to see the amazing run by Pakistani Rupee “Pakistan Rupee Excels Compared to Asian Currencies Against US Dollar.”