SBP briefs SIFC on steps against US dollar hoarding

ISLAMABAD: The State Bank of Pakistan has carved out a plan to discourage the hoarding of US dollars under which it has made biometric verification mandatory for the purchase of $500 and above from the exchange companies.

“The top notches of the central bank informed the meeting of the SIFC (Special Investment Facilitation Council) Apex Committee’s participants on January 3, 2024, that this is part of the comprehensive reforms in the exchange companies sector,” a top official at SIFC Secretariat said.

Pakistan is already facing the dollar crisis as exports and remittances are not up to the mark and major chunks of dollars are used to finance the imports. The unscrupulous elements always take advantage and start hoarding US dollars to make windfall profits. SIFC was also told that the State Bank of Pakistan has also reduced the US dollar purchase limit for travel purposes from $10,000 to $5,000 and annual from $60,000 to $30,000.

Any purchase of $2000 or above from exchange companies shall be paid through the Pak Rupee account of the customer. For an individual, the central bank has fixed the US dollar purchase limit of $10,000 per day and annual purchase of $100,000. Under the reforms, FIA will be the official organization to undertake an effective crackdown against illegal foreign exchange operators in coordination with the State Bank of Pakistan and relevant stakeholders.

“These reforms will be made public when the next SIFC meeting approves them,” the official said.