The SBP introduced ڈالر 1.2 billion in the interbank market in three months to curb the devaluation of the rupee, but the move was not successful and the rupee fell to an all-time low.
The historical devaluation of the rupee shows that expansion policies have to pay the price without addressing the structural economic shortcomings. The move to inject Rs 1.2 billion into the exchange market is contrary to the policies stated by the SBP, the IMF, and the Finance Ministry, all of which claim that the rupee is valued by market forces.
Government sources told The Express Tribune that from mid-June to the first week of this month, the central bank had pumped 1. 1.2 billion of its reserves into the market. The highest amount of کروڑ 100 million in a single day was given to the market in July and then 8 85 million in a single day was given to the market in August.
Neither the Ministry of Finance nor the central bank itself has denied the SBP’s provision of dollars in the market. In response to the question of whether the SBP had taken this step with the consent of the Ministry of Finance.
The Ministry of Finance said that foreign exchange is the sole responsibility of the SBP and the Finance Division does not interfere in it.
Despite the SBP providing 1. 1.2 billion in the market, the rupee fell to a historic high of Rs 168.94. The rupee has depreciated by 11.51 rupees or 7.28 percent against the dollar since the beginning of the current financial year.