On Tuesday, Jameel Ahmad, the governor of the State Bank of Pakistan (SBP), told the National Assembly’s Standing Committee on Finance and Revenue that inquiries had been initiated against eight banks for their alleged involvement in exchange rate manipulation.

According to Ahmad, the first part of the investigation focused on Bank Al Habib, Habib Bank Limited (HBL), National Bank of Pakistan (NBP), Meezan Bank Limited, United Bank Limited (UBL), Allied Bank Limited (ABL), and Standard Chartered. The name of eighth bank was not disclosed.

He told the tribunal that ABL, NBP, and Standard Chartered had each received show-cause warnings. The governor continued by saying that in the following stage, the other banks will be looked into.

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The committee’s chairman, MNA Qaiser Ahmad Sheikh, gave SBP instructions to take the proper action against all banks and exchange firms implicated in the manipulation of the currency rate during today’s meeting.

According to a news release from the National Assembly Secretariat, he requested that the central bank assess the severity of the violations by both parties and take the necessary action to ensure that nobody “has the audacity to play with the economy of the country.”

According to Dawn, the committee believed that the banks made enormous profits during the recent volatility in the exchange rate and the differential between the interbank rate and the rate provided by exchange providers.

Ahmad has told the committee that after the investigation is complete, anyone who violated the rules will be punished.

Members of the Committee, the Secretary of Finance, the Chairman of the FBR, the Governor of the State Bank, and other senior executives from the relevant agencies attended the meeting of the Committee.

Prior to this, Dawn claimed that banks had quadrupled their purchases of US money and were using credit cards to move it outside as the government struggled to stop dollar withdrawals.

In a media interview the next week, Finance Minister Ishaq Dar declared that manipulating the exchange rate would not be permitted.

Dar stated that the rupee is now not in the proper position and added that he was aware of some speculators who were playing this game and advised them to quit right away.