SBP issues steps to enhance transparency in foreign currency transactions

KARACHI: The State Bank of Pakistan (SBP) has introduced regulatory measures to enhance transparency in the foreign currency transactions by the exchange companies and to curb undesirable outflow of foreign currency, a statement issued by the central bank said.

The regulatory measures included persons travelling to Afghanistan will be allowed to carry only $1,000/person/visit with a maximum annual limit of $6,000.

The exchange companies will be required to conduct biometric verification for all foreign currency sale transactions equivalent to $500 and above and outward remittances. This requirement will be applicable with effect from October 20, 2021.

The exchange companies will sell the foreign currency in cash and make outward remittances, equivalent to $10,000 and above, against the receipt of funds through cheque or banking channels only.

These regulatory measures will help improve the documentation of sale of foreign currency by the exchange companies and place a check on undesirable outflows of foreign currency.