Exchange firms handled $7bn in CY24

KARACHI: Pakistan’s exchange companies handled a total volume of approximately $7 billion in 2024, supporting the nation’s foreign exchange reserves and meeting the nation’s foreign currency requirements.

Zafar Paracha, secretary general of the Exchange Companies Association of Pakistan (ECAP), said in a statement issued on Thursday that the exchange firms provided $3.85 billion to the interbank market to bolster the country’s foreign reserves.

“Moreover, $3.15 billion was dealt in the open market to support international travel, including Haj and Umrah pilgrimages, payment of overseas university fees, family assistance and medical treatments abroad,” Paracha added.

The country’s official foreign exchange reserves rose from $4.44 billion in June 2023 to $11.71 billion as of December 27, 2024, providing an import cover of over two months.The rupee appreciated by 1.2 per cent against the dollar in 2024, due to a strong external position, marked by a current account surplus, higher remittances and a narrowing gap between interbank and open market currency rates.

Last week, the State Bank of Pakistan (SBP) released a revised set of regulations for exchange businesses, describing corporate governance structures, establishing criteria for information technology systems and internal controls, and strengthening the supervisory and enforcement regime.

The framework will replace the existing Exchange Companies Manual and is effective from January 1, 2025. In order to ensure full compliance with the framework, the exchange companies will formulate and align their policies, procedures and systems by June 30, 2025.