According to a circular released by the central bank, the State Bank of Pakistan (SBP) has tightened the rules governing the sale and purchase of foreign currencies in an effort to improve paperwork and transparency.
Foreign exchange companies must verify that no individual purchases more than $10,000 in foreign currency in a single day and $100,000 or equivalent in other currencies in a calendar year, in cash or outward remittances, according the SBP modifications.
The policy “is largely to deter speculative buying and selling of foreign exchange from exchange companies without compromising the market’s ability to satisfy the legitimate demands of the public,” according to the circular.
According to the SBP, the limitations were put in place to take into account each individual’s personal foreign exchange needs.
Individuals, on the other hand, can continue to use banks to transmit educational and medical expenditures overseas up to USD70,000 each calendar year and USD50,000 every invoice, as long as they follow existing standards.
In the event that a remittance of any sum more than the aforementioned restrictions is required, people can contact the SBP’s Foreign Exchange Operations Department through their banks.
Regulations governing people’s foreign money accounts, meanwhile, remain in force.
According to the circular, exchange companies must get supporting documents when selling foreign currency for more than $1,000 or equal in other currencies, confirming the transaction’s purpose. The companies were warned by the SBP not to carry out transactions without permission letters.
It emphasised that businesses should only conduct business at the company’s authorised locations and not supply clients with delivery services.
