Karachi: The State Bank of Pakistan (SBP) on Sunday (December 19) issued a circular putting an upper buying limit of USD 10,000 per day or USD 100,000 per annum per individual for buying foreign currency from exchange companies, news sources reported. The major rationale for imposing an exchange restriction, according to the central bank, is to ensure the economy’s regularisation and documentation.
As per the reports, Individuals will still be able to transfer educational and medical expenses of up to USD 70,000 each calendar year or USD 50,000 through bank invoices respectively. Individuals who have a sum over the upper limit must notify the SBP Banking Services Corporation’s Foreign Exchange Operations Department through their bank. In addition, when selling foreign exchange for more than USD 1,000 (or comparable in other currencies), the money exchanger must now collect supporting documents proving the transaction’s purpose. Moreover, the new instructions prohibit Exchange Companies and Exchange Companies in the ‘B’ category from providing delivery services to their clients or performing transactions on authority letters. Customers would be required to sign a document stating that they have not exceeded a daily or yearly upper limit after the new regulations take effect.
According to SBP sources, the letter issued by amending paragraph 9 of chapter 3 and paragraph 12 of chapter 8 of the Exchange Companies’ Manual would reduce dollar hoarding and purchasing while ensuring that exchange companies continue to serve legitimate consumers.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
