With the rupee hovering near its all-time low, the central bank on Friday introduced a set of tough measures to curb smuggling and hoarding of the increasingly sought-after hard currency, allowing medium-to-large deposits through banking channels. Currency transactions routed.
In a notification issued on Friday, the State Bank of Pakistan (SBP) has amended the rules for exchange companies for purchase or outward remittance of foreign currencies as per para 9 (g) and para 9 (s) of Chapter 3. Listed under and para 12)(d) of Chapter 8 of the Exchange Companies Manual.
“In order to further strengthen the regulatory framework for exchange companies, and to encourage consumers to use banking channels to purchase foreign exchange from exchange companies, the existing regulations defining the scope of business of exchange companies were amended. which will be effective immediately.” This applies to both regular exchange companies and exchange companies holding ‘B’ category licences, the notice read.
Purchase of foreign currency
If you plan to buy foreign currency, particularly US dollars, exchange companies are instructed to “buy all foreign currency of $2,000 or more (or its equivalent in other currencies) against the rupee.” Sales transactions shall be made by bank transfer or check through exchange companies. Customer’s personal account.”
Exchange companies have been directed to provide the State Bank with the transaction/instrument reference number and the name of the funds transferring/issuing bank, along with the customer ID number.
This will apply to both regular and exchange companies holding ‘B’ category licences.
External remittances
All foreign currency sales transactions for outward remittances of $2,000 or more (or its equivalent in other currencies) against the rupee, other than simple currency exchange at the time of exchange, shall be made through bank transfer through exchange companies or by the customer. Payments will be made through personal account checks.
A similar documentation process will apply.
