Dollar sales to banks fell by $70m in Feb. Currency dealers reported a decline of $70 million in the selling of dollars to banks in February, according to statements made on Monday. Throughout the current fiscal year, the open market had consistently sold over $300 million per month.
Dollar Sales to Banks Decline By $70 Million
Malik Bostan, Chairman of the Exchange Companies Association of Pakistan, noted that in January, dealers sold approximately $320 million to banks, but this figure dropped to around $250 million in February.
He attributed this decline to market closures on Kashmir Day and during the February 8 General Elections. Additionally, February being the shortest month of the year contributed to the decrease in dollar sales, with market closures accounting for half of its duration.
Dollar rate will increase or decrease in pakistan
Remittances from overseas Pakistanis also experienced a 6% decrease in February compared to January, reflecting a decline in the State Bank of Pakistan’s foreign exchange reserves, which fell twice in recent weeks.
Dollar Sales to Banks Decline By $70 Million in February 2024
Despite these declines, Bostan expressed optimism about higher inflows in March, noting that inflows typically increase during Ramadan by up to 20% due to Zakat, charity, and higher consumption. Dollar sales to banks fell by $70m in Feb, Moreover, the stability of the exchange rate is crucial for boosting inflows of export proceeds.
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Currency experts anticipate that the exchange rate will remain stable over the next two months, especially with hopes of receiving $1.2 billion from the International Monetary Fund (IMF).