KARACHI / ISLAMABAD – In a bid to stabilise the volatile rupee-dollar exchange rate, the State Bank of Pakistan (SBP) has summoned top commercial banks for an urgent meeting to address surging foreign exchange demand and issues around import financing.
Sources reveal the central bank is likely to issue fresh directives, especially concerning delays in opening Letters of Credit (LCs)—a practice that often leads to sudden spikes in dollar demand when vessels arrive. The SBP is also expected to reinforce pressure on banks to help support the rupee, which recently appreciated to Rs284.41 following intensified crackdowns on currency smuggling.
Despite the rupee’s recent gains, the SBP itself remains the largest buyer of US dollars, having absorbed nearly $8 billion so far in FY25. The upcoming discussion will focus on improving coordination, ensuring timely LC approvals, and discouraging practices that create artificial demand shocks.
The meeting signals growing concern within financial circles over the currency’s fragility and the central bank’s commitment to keeping exchange rates under control.
This story has been reported by PakTribune. All rights reserved.