SBP clears confusion over banks' role in foreign currencies dealings

KARACHI: The State Bank of Pakistan said in a press statement that there were some confusions regarding the revised instruction in the Foreign Exchange Manual related to the role of banks in selling or purchasing foreign currencies to and from the public.

“With respect to revised Chapter 11, it has come to our notice that there are some confusions or misinterpretations regarding para 2 suggesting that SBP has allowed the banks to sell or purchase foreign currencies to and from the public by amending the existing regulations,” said the press release.

It added that prior to the recent revision in Chapter 11, “every authorised branch is permitted to deal in foreign currency notes, coins, deposits, credits, drafts, travelers’ cheques, letters of credit and bills of exchange, expressed or drawn in Pakistani currency but payable in any foreign currency.”