Bankers and money changers have said that if the inflow of foreign exchange through banking channels remained high in September, remittances could increase by up to $2 billion.
According to the reports, currency experts say that the inflow of foreign exchange through banking channels is high for at least four reasons, forcing Pakistanis abroad to send their money only through banks.
Malik Bostan, president of the Forex Association of Pakistan, said the closure of commercial flights had forced all transmitters to send money through banks.
He said that due to the coronavirus, the movement of Pakistanis abroad was restricted and as a result, a definite process was started towards formal channels (banks).
Malik Bostan said he used to bring thousands of dollars in his bag instead of sending them through the banking system.
“The current account surplus in July and August strengthened the exchange rate and will continue to support the country’s economy,” he said.
Malik Bostan added that exchange companies were depositing more dollars in banks while open markets were trading almost unilaterally as buyers traded only 10 per cent while the rest were sellers.
Extremely low dollar purchases by exchange companies and greenback purchases from open markets have boosted the foreign exchange reserves of commercial banks, reaching a 12-month high of more than 7 7 billion on September 18.
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In September 2019, the value of commercial banks was $7.29 billion.
According to an SBP report released in September, Pakistan’s current account surplus was recorded at $297 million in August, compared to a deficit of $601 million in the same period last year.
According to the report, the current account surplus has decreased by 71% as compared to 50 508 million in July, which was increased from the previously reported figure of 42 424 million.
With the current account surplus rising for the second time in a row in the new fiscal year, the country seemed to have improved its external front, which ran a 20 billion deficit in fiscal 2018.
It should be noted that the situation of the deadly coronavirus affecting all parts of the world was quite satisfactory in Pakistan but now the number of cases is increasing.
A total of 684 people were diagnosed with the virus in Pakistan till September 27 and 6 patients died while 280 people recovered.
The cases reported today include 81 cases from Balochistan and 29 from Khyber Pakhtunkhwa.
So far, 310,275 people have been infected with the coronavirus in the country, but 295,613 of them have recovered and 6,457 patients have died.