Rupee’s volatility

Salman Faridi

Hyderabad

This is apropos a Business Recorder news item “Dar takes major steps to tackle rupee volatility” carried by the newspaper yesterday. According to it, ‘Federal Minister for Finance and Revenue Senator Ishaq Dar has initiated efforts to control the volatility in the exchange market and keep the value rate at its real value. In this regard, he has held meetings with banks and exchange companies to discuss the economic situation and issues related to exchange rate.’

The rupee slide constitutes a challenge to Dar’s own reputation and image because of some very well-known reasons. That Dar has always advocated a stronger rupee against US dollar is a fact. It is therefore heartening to note that he has taken some concrete steps aimed at arresting the slide of a beleaguered rupee, which had fortunately ended its very long losing streak on news about his return to the country. Unfortunately, however, nothing seems to be working to end PKR’s woes. What is also important to note is Dar’s warning that he has issued to currency speculators operating in open market and their facilitators who are said to be firmly ensconced in the cozy environs of various banks. The government must take action against all those who are responsible for PKR’s unwarranted slide. Any further weakening of PKR will only add to country’s economic woes. Hence the need for taking all the required steps with a view to strengthening PKR against the US dollar.