The State Bank of Pakistan has introduced new restrictions on foreign currency purchases. The policy shifts most dollar transactions toward a cashless system. Resident Pakistanis can no longer receive cash when buying foreign currency for deposits. Instead, exchange companies must transfer the amount directly into FCY accounts. Individuals without FCY accounts cannot buy cash dollars for deposit purposes. This restriction changes how buyers interact with exchange companies.
Revised Process for Buyers
Buyers will now receive a check when purchasing dollars from an exchange company. The check usually takes at least five days to clear. Transfers become immediate only when the buyer’s FCY account is in the same bank. The new process may inconvenience frequent buyers who prefer quick transactions. The central bank aims to enhance transparency in currency operations. Officials say the measures help document foreign exchange flows more effectively.
Stricter Documentation Requirements
The central bank has tightened documentation for currency purchases. Any transaction above 500 dollars now requires biometric verification. Buyers must also provide a stated purpose with supporting documents. The requirement is particularly strict for travel, studies, Haj and Umrah. The policy seeks to curb misuse of foreign currency. It also aims to reduce speculative activity in the open market.
Impact on Exchange Companies
Bank-owned exchange companies are likely to benefit from the revised rules. These companies already operate within the banking system. Their access to formal channels may give them a competitive advantage. Independent money changers face new limitations under the policy. They cannot hold cash dollars in bank accounts. Their restricted flexibility may affect market competition.
Slower Transactions for Other Currencies
The new rules may slow euro and pound transactions. Check-based transfers for these currencies can take up to twenty five days. Market participants expect delays to affect customer behaviour. The central bank has not commented on possible revisions. Analysts say the system may evolve as implementation continues.
