Speculators turn to ‘grey market’ for better dollar rates

Due to the regulatory measures taken by the government and authorities concerned for regulating the sale and purchase of foreign exchange, speculators have turned to the “grey market” for better rates, thus contributing to a price hike in the open market, as the historic high of Rs181.20 was recorded on Monday.

In the open currency market, the dollar rose sharply by Rs1.30 to close at Rs181.20, while in the inter-bank market, the dollar rose by 4 paisa to close at Rs178.16, taking the difference between both markets to Rs3.04.

In this regard, the Exchange Association of Pakistan Secretary General Zafar Paracha told Express News that after the strict measures taken by the government, the flow of dollar has stopped in the open market.

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He said that speculators have turned to the grey market due to rumours of possible appreciation of the dollar. He added that black money in the form of foreign currency also flowed into the market, due to which open market rates surged.

He called for a government-led crackdown on the grey market, which he said was toying with the country’s economy.