SBP allows banks to buy and sell foreign currencies in Pakistan

KARACHI: State of Bank of Pakistan on Saturday has authorized all banks in the country to buy and sell all foreign currencies with the public.

In the revised chapters of Foreign Exchange (FE) Manual, the SBP put an end to the business of exchange companies by handing over the foreign currency business to all banks and their branches across Pakistan.

“Such currencies or instruments may be freely purchased by the Authorised Dealers (banks) against payment in PKR. Authorised dealers may also purchase foreign currencies withdrawn by the account holders from their foreign currency accounts and from the walk-in-customers against payment in PKR subject to fulfilment of applicable AML/CFT regulations,” SBP had stated.

Earlier, the foreign currency exchange business was solely restricted to exchange companies with banks not getting permitted to buy or sell it with the public.