Strong demand contributing to rise in US Dollar rate

KARACHI: The President of the Forex Association of Pakistan, Malik Bostan, has attributed the recent increase in the value of the US dollar against the Pakistani rupee, ARY News reported on Tuesday.

In his statement, Malik Bostan explained that the exchange rate is experiencing an upswing due to rising demand for the dollar, however, a decrease in demand would likely lead to a depreciation of the dollar’s value.

He noted that the US dollar is facing a decline in value globally, while the importers are actively purchasing dollars.

According to Malik Bostan, the pressure is also mounting from multinational companies sending dividends and profits internationally, with additional outflows in the form of external payments, including payments from Pakistan International Airlines (PIA).

Furthermore, exporters sent over Rs 27 billion last month, and remittances have amounted to Rs 24 billion, with the gold imports contributing an additional Rs 2.4 billion to the forex reserves.

Forex dealers have also extended $350 million to the State Bank through commercial banks.