Analysis: How the govt ‘tamed’ dollar, inflation in one fell swoop
IT’S a curious case of the rising rupee and falling inflation. How can the local currency strengthen as the mighty dollar continues to pummel all major currencies: the euro, pound sterling, the yen, the yuan, and whatnot? And how did headline CPI inflation lose four percentage points to arrive at 23.2pc in September, when our curries have fewer and fewer tomatoes and onions these days? At least, this is how the ‘common man’ — be he on the street or on social media — and, of course, the opposition parties think. They have a nagging suspicion that those at the helm have resorted to “technical manoeuvring” — or, to put it simply, playing with figures. Former economic adviser Dr Ashfaque H. Khan says he had been saying for a while that treasurers of commercial banks and members of forex associations were involved in “playing havoc on the exchange rate”. “I have been demanding for the last several weeks that the SBP investigate and punish these criminals,” he said.