Crackdown yields $900m surplus in a month: ECAP

The ongoing crackdown against illegal forex trading and smuggling has so far yielded up to $900 million surplus in the open market which was deposited in banks, said currency dealers. Currency dealers said the much-needed administrative measures produced extremely valuable results for the economy but the policy reforms for Afghan transit and smuggling of Iranian oil also supported saving the hard-earned dollars. “We have deposited an estimated $800 to $900 million in the banks since the crackdown started in September showing highly appreciable results,” said Zafar Paracha, General Secretary of the Exchange Companies Association of Pakistan (ECAP). As a direct outcome of the crackdown, the daily average trading volume of exchange companies has expanded to $50 million from $5-$7m earlier. “We are selling up to $40m per day to the banks while inflows from overseas Pakistanis are also unprecedented,” said Mr Paracha. “The remittances being channelled through the exchange companies have increased by 10 to 15 per cent and surely inflows through banks would also rise,” he said.