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[ad_1] KARACHI: In a significant regulatory move, Pakistan’s central bank has mandated open-market currency dealers to submit their day-end closing prices for the six major currencies to their association, aiming to establish a more accurate average buying and selling price for individual buyers and sellers at the close of each working day. The State Bank of Pakistan (SBP)‘s directives, set to be effective from Tuesday, December 26, were outlined by Zafar Paracha, General Secretary of the Exchange Companies Association of Pakistan (ECAP), in a conversation with The Express Tribune. The major currencies included in these directives are the US dollar, EU euro, UK pound, Saudi riyal, UAE dirham, and Japanese yen. Paracha conveyed that the SBP’s latest instructions obligate exchange companies to submit their day-end buying and selling prices to the association. Paracha said that this measure is designed to improve the overall pricing mechanism, leading to a more robust and reliab...

[ad_1] KARACHI: The price of gold hit a three-month high at Rs221,000 per tola (11.66 grams) in Pakistan, following a global trend, as the domestic currency remains largely stable at around Rs285 against the US dollar in the interbank market on Wednesday. With the latest increase of Rs2,600 per tola in the day, the precious metal has cumulatively increased by 2.45% or Rs5,300 in the past four consecutive working days to date, according to the All Pakistan Sarafa Gems and Jewellers Association. According to State Bank of Pakistan’s (SBP) data, the domestic currency ticked up for the second successive working day by 0.05%, or Rs0.13, to close at Rs285.39 against the greenback. The currency has been fluctuating near and around the currency level for the past around 10 days. While talking to The Express Tribune, AA Gold Commodities, Director Adnan Agar said gold has hit a seven-month high at $2,047 per ounce (31.10 grams) in the international market. This provided the basis for...

[ad_1] KARACHI: The State Bank of Pakistan (SBP) is mulling over monetary policy decision this week. The economic contraction is so severe that this entire fiscal year will be marred with economic, social and political chaos. Entire population – educated or not – is either discussing dollar rate or inflationary trends in fuel and food prices. Granted that central bank’s primary job constitutes reining in inflation, but will the expected interest rate hike solve the problems or add to them? Firstly, inflation in Pakistan is not led by excessive demand (demand-pull). Purchasing power is negligible and neither is economy overheating to create shortages or abnormal profits. Domestic inflationary wave is driven by currency depreciation, utility price hikes, global food prices and administrative failures (cost-push). Secondly, inflation is not an outcome of excessive money supply in the country. Surely, exorbitant cash in circulation is not returning back to formal channels with a...

[ad_1] KARACHI: The Pakistani currency marked a remarkable surge, hitting an almost one-month high at Rs297.96 against the US dollar in the interbank market on Thursday. This upswing represents the currency’s seventh consecutive working day of gains, attributed to the ongoing crackdown against currency smugglers. According to data from the State Bank of Pakistan (SBP), the rupee recorded a fresh gain of 0.29%, equivalent to Rs0.86, closing at Rs297.96 against the greenback. This remarkable performance translates to an overall gain of almost 3%, or Rs9.14, in the past seven days. The currency’s rally also received indirect support due to speculation regarding an upward revision in the interest rate by the central bank. However, the SBP surprised the market by leaving its key policy rate unchanged at the present 22%. Also read   C/A deficit shrinks 79% over stagnant imports Another unexpected development emerged from Pakistan’s gold market. For the second consecutive working ...