SBP not informed govt before devaluing rupee: PM Imran Khan

[volatile]

https://nation.com.pk/03-Dec-2018/s...J5wOUH6ptQz2BQeOcnO8tkF-V5tqa00oiex_aVH7D1tkI

Prime Minister Imran Khan on Monday said the State Bank of Pakistan (SBP) did not inform the government before devaluing the rupee last week and they are now considering a mechanism to ensure this does not happen in the future.



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In a meeting with media persons, the premier spoke about the country’s economic and security situation and revealed that he received a letter from US President Donald Trump earlier today. In the letter, Trump has asked Pakistan to play its role in Afghan peace talks which are aimed at catalysing an end to the 17-year invasion of Afghanistan by US troops, the premier told the journalists.

PM Imran also spoke about the current hike in the value of dollar and revealed, “I found out about the dollar hike through television."

“Earlier as well when the price of dollar touched a record-high against the rupee, I was not informed beforehand. The central bank had devalued the currency and it’s an institution which overlooks these matters,” he added.

While stating that the SBP did not ask the government before taking the step, PM Imran said, "We are now working on a mechanism under which the SBP cannot devalue the currency without taking the government into confidence first.”

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There was extreme volatility in the currency market on Friday, when the rupee plunged more than 6 percent at one point before paring a chunk of the losses. The US dollar hit an all-time high of Rs142 in the interbank market.

The rupee was trading 1 percent weaker on Monday, at about Rs137.5 per dollar.

A new low in governance

 

[El Sidd]

oh really?

 

[SunilM]

Umm...Asad ummar keeps saying that SBP is independent and GOVT cant set exchange rate. We know its untrue. Central Banks are kept autonomous for a reason around the world. Now IK shows his lack of knowledge and says in future GOVT will have a role in setting exchange rate. These people will run the economy to the ground.

 

[war&peace]

Okay then taken an appropriate measure Mr PM and remove the chairman / president of the SBP and appoint a right person or simply stop complaining.

 

[RIP Pak LAW]

As per the law, SBP has every right to devalue the rupee when required and they are not required to inform the PM first though keeping volatile situation of Pakistani Rupee, its better to have a mechanism which can keep the dollar value in check. A mechanism which involves prior understanding of PM,finance minister and SBP before devaluing the currency at proportionate levels. During PML N tenure, Ishaq Dar fixed dollar at Rs 103 for 2 years though had SBP operated freely, Rupee would had crossed Rs 125 in 2016 itself.

 

[volatile]

As per the law, SBP has every right to devalue the rupee when required and they are not required to inform the PM first though keeping volatile situation of Pakistani Rupee, its better to have a mechanism which can keep the dollar value in check. A mechanism which involves prior understanding of PM,finance minister and SBP before devaluing the currency at proportionate levels. During PML N tenure, Ishaq Dar fixed dollar at Rs 103 for 2 years though had SBP operated freely, Rupee would had crossed Rs 125 in 2016 itself.

What childish comments ,SBP is not regulator infact it acts more of a implementer to Govt policies by keeping check economics of the country ,Now SBP with out Govt approval cant devalue Rs unless Govt instructed to do so . By the way this devaluation occured because of private bankers total 24 who were doing future trading on dollars ,Irony is Insafiyan supporters will make any logic other than the actual facts

 

[RIP Pak LAW]

What childish comments ,SBP is not regulator infact it acts more of a implementer to Govt policies by keeping check economics of the country ,Now SBP with out Govt approval cant devalue Rs unless Govt instructed to do so . By the way this devaluation occured because of private bankers total 24 who were doing future trading on dollars ,Irony is Insafiyan supporters will make any logic other than the actual facts

you are an idiot. First go and learn the policy as per the law about currency value in Pakistan before posting next time.

 

[Syed1.]

you are an idiot. First go and learn the policy as per the law about currency value in Pakistan before posting next time.

Not his fault he is a donkey eater.... excuse his lack of brain power

 

[Abdussamad]

What childish comments ,SBP is not regulator

Yes it is. It is the regulator of the financial system. Exchange rate is under its purview as are interest rates.

Now SBP with out Govt approval cant devalue Rs unless Govt instructed to do so .

Ah now this is debatable. The central bank in Pakistan has questionable autonomy. But why would IK says he didn't know about it if his government was informed? Does playing ignorant get you points in the public arena?

 

[AyanRay]

What childish comments ,SBP is not regulator infact it acts more of a implementer to Govt policies by keeping check economics of the country ,Now SBP with out Govt approval cant devalue Rs unless Govt instructed to do so . By the way this devaluation occured because of private bankers total 24 who were doing future trading on dollars ,Irony is Insafiyan supporters will make any logic other than the actual facts

Wrong.