SBP directs banks to tighten internal controls for rupee stability

KARACHI: The State Bank of Pakistan (SBP) has directed the commercial banks to tighten their internal controls for strengthening the rupee value.

The central bank officials met the chief executive officers (CEOs) of banks to discuss the position of foreign exchange and the positive development in this regard, sources said.

The banks have been informed that the current account was adversely affected by the recent increase in import bill. Besides, the outflow of dollars due to the Afghanistan issue was also responsible for declining foreign exchange reserves.

The SBP said the relationship with the International Monetary Fund (IMF) was also getting better and positive news on the matter is expected shortly.

The banks have been informed that the central bank has taken outstanding measures to counter these problems and build a positive perception about the rupee stability.

The Pakistani rupee is already stable and will be better once the Saudi funds arrive and oil facility comes through. In this regard, the SBP advised the banks that undue currency positions should be avoided.

Further, the internal staff and customers need to be given clear communication about the stability of the environment and that it is moving in the positive direction.