Dollar black marketing booming in Peshawar

[Naveed Yaseen]

ABDUL QADOOS
PESHAWAR (October 19 2008): The black marketing of the foreign currencies especially US dollars is booming in the local currency market and failure to take preventive measures by the concerned authorities would further plunge the value of Pakistani rupee.

The currency market of Peshawar situated at Chowkyadgar is booming with the business as hundreds of Afghan refugees have also joined the activity. "Every person, even those having cash amount of some Rs 5000 to Rs 10000 are also purchasing dollar in bid to earn a little amount," Meherban Shah a young dealer told Business Recorder.

Currency dealers having agents in Jalalabad, Afghanistan are fixing price of the currency in the local market. Million of dollars are smuggled to Afghanistan on daily basis, as there is no check on the movement of the currency. Despite the gaining of rupee against dollar in other cities, it was sold at Rs 90 in Peshawar on Saturday.

President Money Changers' Association Haji Sherzada Khan attributed the unprecedented surge in value of dollar against rupee to smuggling of dollar to Afghanistan.

He called for keeping tight check on the movement of the currency on the Pak-Afghan border. "The Afghan refugees travelling across the border at Torkham are carrying it over to their country by hiding in their goods like suite cases," he said. He said that like banking industry, the State Bank of Pakistan (SBP) should also come forward to prevent the dollarisation of the economy.

He suggested ban on the mailing of the foreign currency by the exchange companies. "The government should at least ban the sending of dollars through TT procedure," he suggested. He said that failure of the government in taking timely measures for arresting depreciation of rupee could deteriorate the situation.

He was also critical of the role of central bank and officials of the Federal Investigation Agency (FIA), who are acting silent spectator regarding the matter. The Money Changers' Association has 365 members where only five exchange companies had established offices. According to market sources the members of the racket of the currency black market pay Rs 1000/- per month to the local office of the federal intelligence agency.

Majority of the shops on Saturday remained closed in wake of the possible crackdown on the dealers carrying illegal currency business in the market. "The personnel of the agency foretold the dealers about the possible raid," said a dealer on condition of anonymity.

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