SBP asks banks, forex firms to accept old dollar bills

KARACHI: The Forex Association of Pakistan (FAP) on Monday asked stakeholders to begin accepting old dollar bills in lower denominations.

The State Bank of Pakistan (SBP) held a meeting with commercial banks and money changers in an effort to provide relief to customers with regard to currency notes such as five, 10 and 20 dollar tenders of old-design.

“An executive director at the central bank has promised banks and foreign exchange companies that the SBP would soon design mechanism on how banks and money changers could deal with this issue in order to protect customers from losses,” the FAP statement said.

The representatives of commercial banks told the central bank’s official that the SBP itself does not accept banknotes below $50 and $100 of old-design. Presently, banks are not accepting the old-design small US currency notes from customers and exchange companies. They also reject mutilated and soiled banknotes. They even refuse to deposit them in banks.

Also, money changers are charging fee and old-design bills at one-three percent lower rate from the market. Some money changers buy old-design notes at a cheaper price and exchange the same in Dubai without incurring any cost, thus making a heavy profit.

“Customers will face difficulties if the money changers completely deny accepting these currency notes,” said Malik Bostan, president at FAP. It’s important to mention here the SBP had already said there was no official restriction on banks to accept and reject small denominations and $100 bills.