Banks not allowed to do foreign currency business, clarifies SBP

KARACHI:  The State Bank of Pakistan (SBP) clarified on Monday it has not allowed banks and their branches to sell and buy foreign currencies from the public across the country.

“It has come to our notice that there are some confusions/misinterpretations regarding Para 2 suggesting that SBP has allowed the banks to sale/purchase foreign currencies to/from public by amending the existing regulations,” reads a statement issued by the central bank.

“In this regard, it is clarified that no such amendment has been made,” the State Bank clarified.

It was reported earlier on Saturday that the SBP has issued revised chapters of Foreign Exchange (FE) Manual assigning the role of currency exchange companies to banks.

The banks were earlier, not allowed to sell or buy foreign currencies directly from public except for those having their own exchange companies.

Though the bank did not explain the future role of exchange companies but they feel threatened with the latest decision.

The SBP said that all incoming persons whether Pakistani or foreign national can bring with them without any limit foreign currencies and other instruments against the submission of a declaration to the customs authorities on amount exceeding $10,000 or equivalent.

The banks were also told to ensure availability of foreign currencies to sell it to the public.