SBP announces new measures to restrict dollar trade

KARACHI: The State Bank of Pakistan (SBP) has tightened the rules governing the sale and purchase of foreign exchange in an effort to discourage “speculative” buying and selling of the US dollar.

According to a notification issued by the central bank, all exchange companies will have to ensure that no individual purchases foreign exchange of more than $10,000 per day and $100,000 (or equivalent in other currencies) per calendar year, in the form of cash or
outward remittances.

Exchange companies are required to obtain supporting documents against the sale of foreign exchange in excess of $1,000 (or equivalent in other currencies) substantiating the purpose of transaction.

However, individuals can avail the facility of remitting educational and medical expenses abroad upto $70,000 per calendar year and $50,000 per invoice, respectively, from banks as per existing regulations.

The SBP has restrained exchange companies from performing any transactions against authority letters. They will perform transactions only at authorised outlets and will not provide delivery services to customers.