IslamabadC: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday said continued erosion in the exchange rate proves that the measures adopted to reduce demand of the American currency have not worked as expected due to uncertainty.
The country saw the fourth round of devaluation as the rupee crashed to Rs129.4 to the greenback due to the gap in the demand and supply which is very unfortunate, it said.
Adjustment in the exchange rate, increased policy rate and other measures have not helped contain the nervousness that has resulted in high domestic demand of the dollar, said President FPCCI Ghazanfar Bilour.
Increased exports and improved remittances have not helped to stabilise the forex reserves as expenditures remain much higher than the income, he added.
Ghazanfar Bilour said that the rupee has lost over 21 percent against the greenback as economic managers are becoming desperate to curtail a widening current account deficit and stop the slide of depleting foreign exchange reserves.
The erosion in the exchange rate will result in a fresh wave of inflation which will hurt the masses and the business community, he noted.
