Karachi. According to currency traders on Monday, the sale of dollars to banks decreased by $70 million in February.
For the majority of the current fiscal year’s months, the open market had been selling more than $300 million.
“We sold the banks about $320 million in January, but that amount dropped to about $250 million in February,” stated Malik Bostan, Chairman of the Exchange Companies Association of Pakistan.
He stated that February was the shortest month of the year and that the decrease was caused by market closures because to Kashmir Day and the general election. When weekly holidays were taken into account, the market was closed for half of the month, he continued. Pakistanis living abroad also sent home less money in February than they did in January—a 6 percent decline. A reduction in the foreign exchange reserves of the State Bank of Pakistan was reflected in the low inflows. Twice in the past few weeks, the reserves have decreased.
Currency dealers were certain that March would see greater inflows, nevertheless.
According to Mr. Bostan, “remittance inflows typically increase in Ramadan by up to 20 percent due to Zakat, charity, and higher consumption during the holy month.”
March 2023 saw the biggest remittances ever, totaling $2.5 billion.
Higher inflows of export proceeds are contingent upon a steady exchange rate, according to currency specialists in the interbank market. Due to the rupee’s apparent strength during the past three months, exporters were dumping their profits right away.
They anticipate that the currency rate will be steady over the course of the next two months as they hold out hope for getting $1.2 billion from the IMF.
