You are currently viewing Exchange rate brought in the market system: Reza Baqir

Exchange rate brought in the market system: Reza Baqir

LAHORE: Dr. Reza Baqir, Governor of the State Bank of Pakistan while talking to business community here today has said that stabilizing economy was top priority  while effective and comprehensive measures were being put in place for gradual amelioration. 

The event was organised at the FPCCI’s Regional Office under the leadership of Abdul Rauf Mukhtar, FPCCI’s Regional Chairman.

According to SBP governor reasons behind increasing trade deficit in recent years was the absence of a market-based exchange rate: “In previous years, whenever the trade deficit increased, the exchange rate did not adjust as it was kept fixed. And it led to increase in the deficit since there was an intervention in the system.”

SBP governor maintained that National economy suffered a huge loss when the money in exchequer ended: “However, we have brought the exchange rate in the market system by devising a policy that ensures monitoring of supply and demand movements.”

A relevant piece published earlier: 

Dr. Reza Baqir is the new Governor SBP

Dr. Reza Baqir is the new Governor SBP

ISLAMABAD: IMF economist Dr. Reza Baqir has been appointed the governor of the State Bank of Pakistan (SBP) for three years.

According to the notification issued by the Finance Division on Saturday (4th of March): “The President of Pakistan is pleased to appoint Dr. Reza Baqir as Governor State Bank of Pakistan for a period of three years from the date he assumes office.”

Dr. Reza Baqir will be replacing Tariq Bajwa who was sacked on Friday apparently for not been able to reign the depreciation of Pakistani Rupees that resulted into an augmentation of the prices of goods. 

Rupee to stabilize: SBP governor

Rupee to stabilize: SBP governor

ISLAMABAD: State Bank of Pakistan (SBP) Governor Tariq Bajwa Sunday expressed the hope that the slide in rupee value would be stemmed once money flows into the economy.

Bajwa said the dollar rate is dependent on two factors: macroeconomic fundamentals and market sentiments. According to a private news channel, he said “As money [flows into] the economy [through cash injected], Insha’Allah you will see, the market sentiment will improve… the pressure will dissipate from the rupee.” The central bank governor said the Supreme Court’s decision to end the mobile phone tax affected the country’s tax net.

Bajwa added that Finance Minister Asad Umar knew about the spike in the dollar and had already clarified in a statement earlier that the rupee devaluation had been discussed with him. On 30th November, the rupee hit an all-time record low of Rs144 against the US dollar, plunging almost five percent after what appeared to be a sixth devaluation by the State Bank in the past year as the country struggles with an acute balance of payment crisis.

The surge in dollar came owing to the widening current account deficit and the International Monetary Fund’s suggestion to the government to realign the rupee with market fundamentals to access funds. The rupee has depreciated by 36 percent against the dollar over the past 12 months. It has fallen by Rs19.5 against the dollar since the Pakistan Tehreek-e-Insaf took the reins of the country following the general election in July this year.

Tags: , , , ,

M M Alam

M. M. Alam is a Pakistan-based working journalist since 1981. Karachi University faculty gold medalist Alam began his career four decades ago by writing for Dawn, Pakistan’s highest circulating English daily. He has worked for region’s leading publications, global aviation periodicals including Rotors (of USA) and vetted New York Times as permanent employee of daily Express Tribune. Alam regularly covers international aviation and defense-related events including Salon Du Bourget (France), Farnborough (United Kingdom), Dubai (UAE). Alam has reported thousands of events and interviewed hundreds of people in Pakistan, UAE, EU, UK and USA. Being Francophone Alam also coordinates with a number of French publications.