Govt decision to reduced value of US dollar lauded

Lahore : The decision of the government to reduce the value of US dollar is in line with the national interests, therefore, it should be implemented as soon as possible, a business leader said Sunday.

Masses had started to hoard dollars due to rumors of devaluation while political uncertainty, a record deficit and reports of some international institutions had also played role in increasing the demand for the greenback, he added.

The masses have purchased around 800 million dollars during the last three months resulting in a crisis like situation but now the government has decided to intervene and reduce the value of the dollar by one rupee in two or three phases which is praiseworthy as it will benefit the economy, said Atif Ikram Sheikh former President ICCI.

He said that dollar in available at Rs 105.50 in the interbank market while its value in the open market is Rs 107.55 while the difference should not be more than a rupee.

The demand of the exporters to devalue the currency is not justified as it will not boost exports but inflation which will hurt the whole population of the country, he observed.

Atif Ikram Sheikh said that reputable currency dealers should also be allowed to receive remittances while the importers of gold, cars and other commodities should be allowed to buy dollars from the open market which will end their reliance on the underground market.

Such a step will help shrink the underground dollar market and boost legal business, he remarked.