SBP moves to curb foreign currency outflow

Hopes it will boost transparency in foreign currency transactions by exchange companies

KARACHI:

The State Bank of Pakistan (SBP) has introduced new regulatory measures to curb the undesirable outflow of foreign currency and to enhance transparency in foreign currency transactions by exchange companies.

According to a statement issued by the central bank on Wednesday, people travelling to Afghanistan will be allowed to carry only $1,000 per person per visit with maximum annual limit of $6,000.

The central bank directed the exchange companies to sell foreign currency and make outward remittances, equivalent to $10,000 and above, against receipt of funds through cheque or banking channels only.

“Exchange companies will be required to conduct biometric verification for all foreign currency sale transactions equivalent to $500 and above and outward remittances,” it said.

“This requirement will be applicable with effect from October 22, 2021. All other instructions are applicable with immediate effect.”

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The central bank added that all other terms and conditions on the subject would remain unchanged.

It warned that failure to comply with these instructions would attract regulatory action under relevant provisions of the Foreign Exchange Regulation Act 1947.

The State Bank voiced hope that the regulatory measures would help improve documentation of the sale of foreign currency by the exchange companies and keep a check on the undesirable outflow of foreign currency.

Published in The Express Tribune, October 7^th, 2021.

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