Monday, May 10, 2021  | 27 Ramadhan, 1442
Samaa TV
Facebook Twitter Youtube
HOME > Money

Dollar price climbs again in Pakistan over lockdown fears

Vaccine imports could add pressure

SAMAA | - Posted: Apr 26, 2021 | Last Updated: 2 weeks ago
SAMAA |
Posted: Apr 26, 2021 | Last Updated: 2 weeks ago
Dollar price climbs again in Pakistan over lockdown fears

Artwork: Syed Saad Ali

Listen to the story
The dollar rate crept up to Rs154.80 in the open market as lockdown fears loomed because Covid-19 cases are going up in the country. It has increased by Rs1.20 in the last four days. “Importers have been opening LCs (Letter of Credit) in haste fearing a lockdown in the country,” said Malik Bostan, who is the chairperson of the Forex Association of Pakistan. He explained that importers have started opening bank LCs to import now even if they were supposed to open them two months later. An LC is an assurance by the importer’s bank to the bank of the seller abroad that a certain amount has been locked in their name. When the consignment arrives, the payment is released. It is basically payment in transit.           “It may become difficult to open LC and import if there’s a lockdown. And then if lockdown begins internationally, the shipping lines will again choke and everything will come to a halt.” He added that government has allowed the private import of Covid-19 vaccines. “Vaccine imports alone could cost will approximately $1 billion this year,” he said. “It may put pressure on foreign exchange and subsequently on the dollar rate.” But another currency expert Zafar Paracha, the secretary of the Exchange Companies of Pakistan, said that the recent hike in the dollar rate was only due to a correction and weekend effect. “The rate fell sharply so it took a bit of a correction. But at the moment, it is only the weekend effect," he maintained. "Remittances will arrive by tomorrow and the dollar rate will return to normal.”  
FaceBook WhatsApp

The dollar rate crept up to Rs154.80 in the open market as lockdown fears loomed because Covid-19 cases are going up in the country. It has increased by Rs1.20 in the last four days.

“Importers have been opening LCs (Letter of Credit) in haste fearing a lockdown in the country,” said Malik Bostan, who is the chairperson of the Forex Association of Pakistan.

He explained that importers have started opening bank LCs to import now even if they were supposed to open them two months later. An LC is an assurance by the importer’s bank to the bank of the seller abroad that a certain amount has been locked in their name. When the consignment arrives, the payment is released. It is basically payment in transit.          

“It may become difficult to open LC and import if there’s a lockdown. And then if lockdown begins internationally, the shipping lines will again choke and everything will come to a halt.”

He added that government has allowed the private import of Covid-19 vaccines.

“Vaccine imports alone could cost will approximately $1 billion this year,” he said. “It may put pressure on foreign exchange and subsequently on the dollar rate.”

But another currency expert Zafar Paracha, the secretary of the Exchange Companies of Pakistan, said that the recent hike in the dollar rate was only due to a correction and weekend effect.

“The rate fell sharply so it took a bit of a correction. But at the moment, it is only the weekend effect,” he maintained. “Remittances will arrive by tomorrow and the dollar rate will return to normal.”  

 
HOME  
 
 
RELATED STORIES

Tell us what you think:

Your email address will not be published.

FaceBook WhatsApp
 
 
 
dollar to pkr, dollar rate today, dollar rate in Pakistan,
 

MOST READ
MOST READ
Pakistan bank branches to remain open on May 10-11
Pakistanis get green signal to do business on Amazon
Pakistan bank branches to remain open this Saturday
 
 
 
 
 
About Us   |   Anchor Profiles   |   Online Advertising   |   Contact Us   |   Feedback   |   Apps   |   FAQs   |   Authors   |   Comment Policy
Facebook   |   Twitter   |   Instagram   |   YouTube   |   WhatsApp