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Euro lures Pakistani exporters as dollar loses lustre
Karachi, Feb 18: Pakistan`s traditionally dollar-hungry exporters are demanding more Euros from their continental trading partners as the greenback loses its shine, analysts said.
Karachi, Feb 18: Pakistan's traditionally dollar-hungry exporters are demanding more Euros from their
continental trading partners as the greenback loses its shine, analysts said.
The Euro has been forging ahead in Pakistan's currency markets as the likelihood of a united states-led strike against Iraq increases.
A further slide in the greenback against the Euro will give Pakistani exporters an extra incentive to switch over to the Euro. The Euro has appreciated 14.3 per cent against the Pakistani rupee since its launch here in January 2002 at 54 rupees. It reached 61.74 yesterday.
On global money markets Euro-dollar parity went as high as 108 cents from 80 cents between December and January. Exporter Shabir Ahmed, a former chairman of Pakistan's Bedwear Exporters' Association, said however that European importers were not showing the same eagerness about using their own currency.
"We now demand our European importers open letters of credit in Euros instead of dollars," Ahmed told a news agency.
"But they have been evasive because of the appreciating value of the Euro against the dollar." Despite their reluctance, there is a marked shift of letters of credit to Euros, according to elixir securities' head of foreign exchange, Mohsin Ahsan.
"Based on bankers' conservative estimates, well over one billion dollars worth of letters of credit are being established in Euros by European importers," Ahsan told a news agency.
Bureau Report
A further slide in the greenback against the Euro will give Pakistani exporters an extra incentive to switch over to the Euro. The Euro has appreciated 14.3 per cent against the Pakistani rupee since its launch here in January 2002 at 54 rupees. It reached 61.74 yesterday.
On global money markets Euro-dollar parity went as high as 108 cents from 80 cents between December and January. Exporter Shabir Ahmed, a former chairman of Pakistan's Bedwear Exporters' Association, said however that European importers were not showing the same eagerness about using their own currency.
"We now demand our European importers open letters of credit in Euros instead of dollars," Ahmed told a news agency.
"But they have been evasive because of the appreciating value of the Euro against the dollar." Despite their reluctance, there is a marked shift of letters of credit to Euros, according to elixir securities' head of foreign exchange, Mohsin Ahsan.
"Based on bankers' conservative estimates, well over one billion dollars worth of letters of credit are being established in Euros by European importers," Ahsan told a news agency.
Bureau Report