SBP governor vows action against banks on higher dollar rates

Jameel Ahmad State Bank

Expects dollar inflows from ‘next week’ onwards

State Bank of Pakistan Governor Jameel Ahmed has vowed to take action against those banks which have earned profit by quoting high dollar rates against the local currency.

He said that the investigation against the banks which were complicit in currency manipulation and quoted higher dollar rates to earn profits has been completed. The investigation report will be brought to light on January 23, he revealed. SBP Governor Ahmed was addressing the Federation of Pakistan Chambers of Commerce and Industry on Wednesday.

The governor struck a note of optimism when he told the industrialists that Pakistan’s foreign exchange reserves position would improve as the country is expected to witness inflows of funds in the coming days. “We are expecting to witness inflows from next week onwards, which would reduce pressure on our foreign exchange reserves. Our reserves will go up as projects in the pipeline will soon start to materialize,” Ahmed said adding that it would help us improve our capacity to facilitate businesses.

He told the FPCCI audience that the State Bank facilitated shipments under the categories of essential, energy, export-oriented industries, agriculture inputs, deferred payment / self-funded imports and imports for export-oriented projects near completion. He emphasized that country’s capacity to export would build up only after we complete export-oriented projects.