SBP tightens rules on purchasing foreign currency

Karachi: The State Bank of Pakistan (SBP) has tightened the rules on sale and purchase foreign currency. 

According to a circular issued by the SBP, this step was taken in an attempt to enhance documentation and transparency. 

The circular stated that the SBP amendments bounds foreign exchange companies to ensure that no individual purchases foreign currency more than $10,000 in a day and $100,000 or equivalent to other currencies in a calendar year, in cash or outward remittances.

“The measure "is primarily to discourage speculative buying and selling of foreign exchange from the exchange companies without affecting the ability of the market to serve the genuine needs of the public,” it added. 

Individuals can still avail the facility to send educational and medical expenses abroad up to USD70,000 per calendar year and USD50,000 per invoice from their banks as per existing regulations.