Volatility: Industrialists express concern over rupee’s freefall
Fall in rupee against USD will create problems for businesses and industries
Fall in rupee against USD will create problems for businesses and industries PHOTO: REUTERS/FILE
ISLAMABAD:
The Islamabad Chamber of Commerce and Industry (ICCI) has expressed great concern over the sharp fall in the rupee’s value against the US dollar as it will trigger a new wave of inflation and create more problems for business and industrial activities in the country.
“The rupee dropped from Rs110 to a dollar to Rs115 in a single day which should be a cause for great concern for the policymakers,” remarked ICCI President Sheikh Amir Waheed in a statement.
He said the rupee had weakened by about 5% in December last year in a similar fashion and another depreciation of over 4.5% in a single day would create new challenges for the economy.
Waheed suggested that instead of withdrawing support for the rupee, the State Bank of Pakistan should make efforts for a stable currency as volatility was disrupting efforts of the private sector for long-term business planning.
“Falling value of the rupee will increase debt burden on the country; depreciation of one rupee causes a jump of Rs60 billion in the public debt burden.”
Published in The Express Tribune, March 22nd, 2018.
The Islamabad Chamber of Commerce and Industry (ICCI) has expressed great concern over the sharp fall in the rupee’s value against the US dollar as it will trigger a new wave of inflation and create more problems for business and industrial activities in the country.
“The rupee dropped from Rs110 to a dollar to Rs115 in a single day which should be a cause for great concern for the policymakers,” remarked ICCI President Sheikh Amir Waheed in a statement.
He said the rupee had weakened by about 5% in December last year in a similar fashion and another depreciation of over 4.5% in a single day would create new challenges for the economy.
Waheed suggested that instead of withdrawing support for the rupee, the State Bank of Pakistan should make efforts for a stable currency as volatility was disrupting efforts of the private sector for long-term business planning.
“Falling value of the rupee will increase debt burden on the country; depreciation of one rupee causes a jump of Rs60 billion in the public debt burden.”
Published in The Express Tribune, March 22nd, 2018.