Banks not involved in dollar speculation during August: Deputy Governor SBP
November 16, 2022
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November 16, 2022 (MLN): Though banks made a notable profit in the mid of this year (June and July) on dollar trading in August 2022 banks have not been involved in any profit-taking activity on dollar trading, Deputy Governor SBP Inayat Hussain clarified during the meeting of Standing Committee on Finance.
Earlier, “Governor SBP highlighted that the banks charged higher rates for opening Letters of Credit (LCs)” and added that investigations against banks should be made public and SBP will impose heavy penalties on them for charging a higher premium in dollars.
“Eight banks are involved in profit-taking, and monitoring has been strict and no avoidance has been lodged”, Deputy Governor SBP said.
Currently, the market is facing a shortage of dollars and the situation will improve in the two-month period.
Moreover, the Current Account Deficit (CAD) has narrowed to $700 million as compared to $1.5 billion last month.