Dar announces inquiry into rupee fall, dollar gain


Islamabad July 6 (TNS): A day after the worst fall of rupee in the open market since 2008, Finance Minister Ishaq Dar on Thursday announced to hold a fair inquiry into the events that led to the sudden depreciation of the currency.

On Wednesday, the rupee suddenly started sliding against the dollar and remained around Rs108 to the dollar before descending to Rs105 against the dollar on Thursday.

“It was a communication gap between some individuals and some institutions. The political events did not lead to the sudden fall of rupee. Everyone including the finance ministry and heads and representatives were taken aback by the sudden turmoil in the open market. An inquiry will soon be launched to fix the responsibility,” Dar said after chairing a meeting of heads and representatives of banks and financial institutions here on Thursday.

“The market has self-adjusted and the dollar has come down. The market will adjust itself in coming days,” he said.

Dar also announced that a permanent governor of the State Bank of Pakistan (SBP) will be appointed within the next 24 hours soon after the prime minister returns to the country from Tajikistan. He said that the new governor will be highly competent, fair and a man of integrity.

“The new SBP governor will hold the inquiry into the sudden turmoil in the market. Who gained and who lost in the artificial manipulation. The manipulators and the beneficiaries will be brought to book,” Dar said adding it was a communication gap between some individuals and some institutions. The manipulators will not be spared.

Earlier, in a statement, Dar said that certain elements were taking advantage of the uncertain times in Pakistan’s politics and exploiting it as an opportunity to make money in the foreign exchange market.