SBP permits exchange companies to export foreign currencies sans US dollar

Karachi: All exchange companies in the country have been allowed to export foreign currencies other than the US dollar and brought in the greenback in their foreign currency accounts maintained with banks in Pakistan.

According to a statement issued by the State Bank of Pakistan, the central bank clarified that this decision had been taken to enable the exchange companies to divert the flow of foreign exchange, mobilised by them, towards the interbank market.

"It has been decided to allow the exchange companies to export US dollar on a consignment basis through cargo/security company," the SBP said, directing firms to ensure the availability of a sufficient amount of US currency notes at their counters to meet the demand of the general public.

The central bank said that it should also be ensured that the proceeds of such export must reach in US dollar account of the exchange companies maintained with banks in Pakistan, within three days of such export.

“Exchange companies shall surrender 100% of foreign exchange received on the export of US dollar, in the interbank market on the same day,” the statement read, adding that this facility will be available until September 30, 2022.

All the firms are further directed to share data on such export and their surrender on a daily basis to the SBP, Banking Supervision Department – 3. 

Meanwhile, exchange companies should also ensure the availability of all relevant records for examination by State Bank’s inspection teams.

The central bank warned that any violation of these instructions by exchange companies would attract enforcement action under the relevant provisions of the Foreign Exchange Regulation Act, 1947.