KARACHI: The Reserve Bank of India has allowed “unlimited freedom” to the Indian Scheduled Banks to buy and sell “any amo­unt” of Pakistani rupee at “any rate”, it was learnt … yesterday [Nov 17] from Indian sou­rces. This freedom, it was stated, had been allowed by the Reserve Bank … to show to the world that the value of the Pakistani ru­­pee in terms of the Indian rupee was lower than the one fixed by the Pakistan Government.

But the fact remains that Indian businessmen are ready to trade with Pakistan at any cost and the decision of the Reserve Bank … is a result of sheer economic forces, it is maintained. Pakistan’s decision to allow the Scheduled Banks to make [remittances] to, and receive from, India within their own sources has, to some extent broken the inter-Dominion trade deadlock. It may, however, be stated that the State Bank order is intended to meet emergencies only.

Unless India accepted the new Pakistan rupee rates, and the State Bank of Pakistan and the Reserve Bank of India agreed to buy and sell the two currencies, normal flow of trade could not be resumed, it was pointed out.

Published in Dawn, November 18th, 2024