By Staff Reporter
ISLAMABAD: The State of Pakistan (SBP) on Tuesday said it has opened an investigation into alleged exchange rate manipulation by a group of banks.
The central bank governor Jameel Ahmad informed finance committee of the National Assembly investigations had been launched against Bank Al Habib, Habib Bank Limited, National Bank of Pakistan (NBP), Meezan Bank Limited, United Bank Limited (UBL), Allied Bank Limited (ABL) and Standard Chartered regarding their role in exchange rate manipulation.
Show-cause notices had been issued to ABL, NBP and Standard Chartered, Ahmed informed the committee, while rest of the banks would be investigated in the next phase.
The governor said inquiry against eight banks was near completion.
The NA panel recommended the government and SBP for taking stern action against those banks and exchange companies which found involved in currency manipulation.
The committee’s chairman, MNA Qaiser Ahmad Sheikh, instructed the SBP to take appropriate action against all the banks and exchange companies involved in the manipulation of the exchange rate.
He asked the central bank to access the extent of violation by both entities and take appropriate action “so that no one has the audacity to play with the economy of the country”.
“The committee was of the view that during recent volatility in the exchange rate and the difference between the interbank rate and the rate offered by exchange companies, the banks earned exorbitant profits.”
The NA panel recommended the government and SBP for taking stern action against those banks and exchange companies which found involved in currency manipulation.
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