The State Bank of Pakistan (SBP) has warned banks of stern action if the outflow of Dollars including its misuse and speculation is not stopped within the banking sector.
Governor SBP, Reza Baqir, chaired on Thursday a meeting with CEOs of the banks held to discuss the situation of depleting foreign exchange reserves of the banks and the unabated devaluation of the Pakistani Rupee against the US Dollar.
According to sources, Governor SBP said the bankers had been involved in the malpractices and speculation of the Dollars through investors and importers which ultimately hit the value of the Rupee.
He directed the banks to enforce strict monitoring against the staff of certain departments particularly the treasury section through telephone calls and available data, and take strict action against those involved in the malpractices.
Sources said the inspection teams of the banking watchdog found out that bankers had asked investors and importers to do advance buying of the Dollars.
Reza Baqir said that country’s current account had been negatively affected by the recent increase of imports coupled with the outflow of Dollars to Afghanistan, which caused the depletion of foreign exchange reserves. However, he said, SBP took outstanding measures to counter these problems and build a positive perception about the currency’s stability. Pakistani Rupee is already stable and will be better once the Saudi funds arrive and Oil Facility comes through, he added.
The Governor directed bank CEOs for informing the internal staff and customers about the stability of the environment and that it is moving in a positive direction.
Recently, the Rupee depreciated against the Dollar to over 175. On the other hand, the foreign exchange reserves fell below the level of $24 billion.
