Some economists in the country have been advocating leaving the value of the dollar to the market for quite some time. According to them, if the determination of the price of the dollar is left to the market, the price of the dollar will rise for a few days and reach a stable level, and the dollar will be sold at a single price. After that, the problem that the hundiwalas are paying a high price for the dollar will no longer exist. I oppose their position and opinion.
In this way, they are giving an easy solution to the problem because they do not give enough importance to the demand structure of money laundering from the country to abroad in the Hundi process. I think, if the dollar price is left in the hands of the market without suppressing those who demand dollars for capital smuggling, then the price of the dollar will increase in the market, then the hundiwalas will buy dollars from expatriates at a higher price of five or six rupees.
Because the main objective of money launderers is to smuggle their money abroad. Therefore, it does not matter to them how much the price of hundi is higher than the price of dollar in the market. Since smugglers can safely smuggle money abroad through hundis without legal trouble, they are not at all reluctant to buy dollars from hundiwalas at high prices. This means that even if the market price of the dollar rises, capital will continue to flow through the hundi system, the market will not set a single price for the dollar.