State Bank allows banks to buy, sell foreign currency

KARACHI: The State Bank of Pakistan (SBP) has allowed banks, all of their branches, to deal in foreign currencies with public across the country, ARY News reported.

The central bank in a circular amended chapters of Foreign Exchange Manual providing details about the currency business while assigning the role of 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.

It is the responsibility of authorized dealers to ensure adequate foreign currency is available with their authorized branches at all times for meeting the requirements of their customers, the manual said.

The central bank circular also said that the dealers may sell foreign currency notes to persons proceeding abroad within the amount of foreign exchange allowed through special permission by the SBP or under the authority delegated to them.