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Business Recorder
5 days ago
- Business
- Business Recorder
Rupee gains against US dollar amid reported crackdown
Rupee's Performance Against US Dollar Since 04 March 2025 The Pakistani rupee strengthened against the US dollar, appreciating 0.19% in the inter-bank market on Thursday. At close, the currency settled at 284.22, a gain of Re0.54. On Wednesday, the currency settled at 284.76. Pakistan's law enforcement agencies have reportedly launched a crackdown against foreign currency smugglers, aiming to prevent the illegal outflow of currencies such as US dollars to neighbouring countries, including Afghanistan and Iran. The raids led to some appreciation of the rupee against US dollar on Wednesday, said Exchange Companies Association of Pakistan (ECAP) chairman Malik Muhammad Bostan on Wednesday. Internationally, the euro crept toward its highest level in nearly four years on Thursday while the yen held to gains following more progress on trade deals between the United States and its largest trading partners, which in turn lifted the broader market mood. Currencies mostly shrugged off news that US President Donald Trump, a vocal critic of Federal Reserve Chair Jerome Powell, will visit the central bank on Thursday. It was not immediately clear whether Trump, who has lambasted Powell repeatedly for not cutting US interest rates more aggressively, would be meeting with the Fed chief. Markets were paying close attention to various tariff negotiations. The European Union and the US are moving towards a trade agreement that could include a 15% US baseline tariff on EU goods and possible exemptions, two European diplomats said on Wednesday. That came on the heels of Washington's trade deal with Tokyo that lowers tariffs on auto imports and spares the latter from punishing new levies on other goods in exchange for a $550 billion package of US-bound investment and loans. Global markets took to the latest developments positively, as risk assets rallied and investors sold the US dollar. The dollar index eased slightly to 97.15. Oil prices, a key indicator of currency parity, rose on Thursday, buoyed by optimism over US trade negotiations that would ease pressure on the global economy and a sharper-than-expected decline in US crude inventories. Brent crude futures gained 24 cents, or 0.4%, to $68.75 a barrel by 0032 GMT. US West Texas Intermediate crude futures climbed 25 cents, or 0.4%, to $65.50 per barrel. Both benchmarks were little changed on Wednesday as markets monitored developments in US-European Union trade talks, following President Donald Trump's tariff deal with Japan.
Arab News
5 days ago
- Business
- Arab News
Pakistan spy agency targets ‘black market dollar trade' to curb rupee slide — forex association president
KARACHI: A deputy chief of Pakistan's spy agency met currency exchange firms this week to address a sharp slide in the rupee, prompting a security crackdown on 'black market dollar trade,' the head of the country's forex association told Reuters on Thursday. The action helped stabilize the open market rate and the rupee recovered against the dollar by one rupee on Thursday, said Exchange Companies Association of Pakistan chairman Malik Muhammad Bostan. 'The dollar is down one rupee today in the open market. This is because we're finally getting the supply we need,' Bostan said. A spokesperson for the spy agency, the Inter-Services Intelligence (ISI), did not immediately respond to an email seeking comment. The ISI is led by Pakistan's powerful military. The action marks the second such intervention in two years after the military helped curb speculative currency trade in 2023
Reuters
6 days ago
- Business
- Reuters
Pakistan spy agency targets 'black market dollar trade' to curb rupee slide, says forex association president
KARACHI, July 24 (Reuters) - A deputy chief of Pakistan's spy agency met currency exchange firms this week to address a sharp slide in the rupee, prompting a security crackdown on "black market dollar trade", the head of the country's forex association told Reuters on Thursday. The action helped stabilise the open market rate and the rupee recovered against the dollar by one rupee on Thursday, said Exchange Companies Association of Pakistan chairman Malik Muhammad Bostan. "The dollar is down one rupee today in the open market. This is because we're finally getting the supply we need," Bostan said. A spokesperson for the spy agency, the Inter-Services Intelligence (ISI), did not immediately respond to an email seeking comment. The ISI is led by Pakistan's powerful military. The action marks the second such intervention in two years after the military helped curb speculative currency trade in 2023.
Business Recorder
6 days ago
- Business
- Business Recorder
Intra-day update: rupee gains against US dollar amid reported crackdown
The Pakistani rupee saw significant improvement against the US dollar, appreciating 0.26% during the opening hours of trading in the inter-bank market on Thursday. At 10am, the currency was hovering at 284.03, a gain of Re0.73. On Wednesday, the currency settled at 284.76. Pakistan's law enforcement agencies have reportedly launched a crackdown against foreign currency smugglers, aiming to prevent the illegal outflow of currencies such as US dollars to neighbouring countries, including Afghanistan and Iran. The raids led to some appreciation of the rupee against US dollar on Wednesday, said Exchange Companies Association of Pakistan (ECAP) chairman Malik Muhammad Bostan on Wednesday. Internationally, the euro crept toward its highest level in nearly four years on Thursday while the yen held to gains following more progress on trade deals between the United States and its largest trading partners, which in turn lifted the broader market mood. Currencies mostly shrugged off news that US President Donald Trump, a vocal critic of Federal Reserve Chair Jerome Powell, will visit the central bank on Thursday. It was not immediately clear whether Trump, who has lambasted Powell repeatedly for not cutting US interest rates more aggressively, would be meeting with the Fed chief. Markets were paying close attention to various tariff negotiations. The European Union and the US are moving towards a trade agreement that could include a 15% US baseline tariff on EU goods and possible exemptions, two European diplomats said on Wednesday. That came on the heels of Washington's trade deal with Tokyo that lowers tariffs on auto imports and spares the latter from punishing new levies on other goods in exchange for a $550 billion package of US-bound investment and loans. Global markets took to the latest developments positively, as risk assets rallied and investors sold the US dollar. The dollar index eased slightly to 97.15. Oil prices, a key indicator of currency parity, rose on Thursday, buoyed by optimism over US trade negotiations that would ease pressure on the global economy and a sharper-than-expected decline in US crude inventories. Brent crude futures gained 24 cents, or 0.4%, to $68.75 a barrel by 0032 GMT. US West Texas Intermediate crude futures climbed 25 cents, or 0.4%, to $65.50 per barrel. Both benchmarks were little changed on Wednesday as markets monitored developments in US-European Union trade talks, following President Donald Trump's tariff deal with Japan. This is an intra-day update
Business Recorder
02-07-2025
- Business
- Business Recorder
Exchange cos welcome their inclusion in PRI
KARACHI: In a major boost to the country's foreign exchange inflows, exchange companies have welcomed their inclusion in the Pakistan Remittance Initiative's (PRI) TT Charges Reimbursement Scheme, terming it a game-changer move that could potentially double home remittances from $4 billion to $8 billion during the current fiscal year. Chairman of the Exchange Companies Association of Pakistan (ECAP), Malik Muhammad Bostan, lauded the government's decision, calling it a step in the right direction and pledged that exchange companies would fully honour the trust reposed in them. He said this decision will bring significant benefits to the country and assured that the exchange companies will fully justify the trust placed in them. 'The government has shown its trust by including exchange companies in the PRI and while exchange companies have surrendered $4 billion during the last fiscal year (FY25), they will provide $8 to $10 billion through interbank in this fiscal year (FY26)', he added. SBP revises Telegraphic Transfer charges scheme, raises limit to $200, includes ECs This is because ECs now have a fair and level playing field, and they will perform outstandingly in this environment, delivering consistent monthly results, he mentioned. Bostan said that it was a long-standing demand of exchange companies and has finally been fulfilled by the ministry of finance and the State Bank of Pakistan (SBP). He thanked Prime Minister Mian Shahbaz Sharif, Finance Minister Muhammad Aurangzeb, Field Marshal Asim Munir and Governor SBP Jameel Ahmed for their efforts in making this inclusion possible, which will greatly benefit the country. He reiterated that the exchange companies will live up to the trust placed in them. He highlighted that last year exchange companies surrendered nearly $4 billion into the interbank market through their 1,500 locations, averaging approximately $2.5 million per location annually. This amount included inward remittances and foreign currency exports. In comparison, banks operating 15,000 locations surrendered around $33 billion, which comes to an average of $1 million per location. Banks were given a rebate of 33 Saudi Riyals per $100 (equivalent to PKR 20-22 per dollar), while exchange companies were only given PKR 2 per dollar and were not provided with a level playing field. As per SBP's fresh directives, no sending fee will be charged for remittances of $200 or more (previously it was only for $100), which is a very positive decision. As a result, the PRI's marketing budget will be cut by 50 percent. The ECAP Chairman said that currently there are about 15 million overseas Pakistani workers receives approximately $8 billion in salaries every month. If they send their full earnings to Pakistan, it could greatly strengthen the economy, reserves, and Pakistani rupee. 'Currently, only $3-4 billion is being remitted monthly; the rest is either being kept in foreign banks or invested in places like Dubai, Europe, or the Middle East. The government should build trust with these overseas Pakistanis, as the remittances they send can also be used to repay Pakistan's debts,' he suggested. Bostan praised overseas Pakistanis for always standing by their country in difficult times, whether during the 1998 nuclear tests or recent conflicts. He acknowledged the important role played by the Chairman of the Overseas Foundation, Syed Qamar Raza, and requested the government to honour overseas Pakistanis and address their demands. He said that exchange companies will demonstrate their performance, making both the government of Pakistan and the SBP's proud. Copyright Business Recorder, 2025
