UNISAME urges SBP to take action against illegal foreign currency trading

March 03, 2023 (MLN): The Union of Small and Medium Enterprises (UNISAME) on Friday brought to the attention of the State Bank of Pakistan (SBP) the issue of unauthorized buying and selling of foreign currencies by dealers and traders, causing turbulence to the economy.

UNISAME's President, Zulfikar Thaver, stated that foreign currency dealers are creating shortages deliberately, making the rates go up and down, and benefit from buying and selling. This has become their business, but it is causing significant losses to importers who are committed to remitting in time to pay import bills.

Moreover, when the rates are lowered, exporters tend to hold back their proceeds. As a result, brokers and dealers make money by taking advantage and buying when it is down and selling when it is high. They bring it down when they are inclined to buy and raise it when they want to sell it by creating a shortage.

This situation has resulted in many brokers and middlemen amassing wealth and hoarding dollars in their lockers. They also do money laundering and currency transfers both ways to and from Pakistan.

According to UNISAME's Council, the dollar has become a parallel currency. In the recent rise and fall, many hoarders made a lot of money overnight, and the very next day, the rate started falling, and they started buying again.

The UC has expressed concern that at this rate, the dollar market is disturbing the feasibility of many industries, and many markets are in turmoil as daily prices fluctuate, prompting traders to hoard goods and dollars to make unlawful gains with undeclared money.

UNISAME urged the SBP through its monitoring agencies to detect these dealers and traders and discipline them to stop this illegal business.

The SBP needs to take action to prevent the manipulation of the foreign currency market, as it is causing a lot of damage to the economy. The SBP must ensure that dealers and traders comply with the regulations to ensure a stable foreign currency market.

UNISAME has emphasized that immediate action is needed to protect the interests of honest traders and importers who are committed to following the rules and regulations of the country.

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