SBP revises forex regulations

KARACHI: The State Bank of Pakistan (SBP) on Wednesday revised the foreign exchange regulations in an effort to align banks’ foreign exchange business with changing market requirements, a statement said.

The new regulations comprise simplification of the existing instructions, removal of redundancies and gradual delegation of powers to the authorised dealers (banks) for facilitation of the stakeholders, it added. “In the first phase, seven chapters of the manual covering regulations on authorised dealers, authorised rates of foreign exchange, forward exchange facilities, foreign currency accounts of banks and purchase and sale of foreign currencies, non-resident rupee accounts of foreign bank branches and correspondents and loans, overdrafts and guarantees stand revised.”

Further, a new chapter has been drafted with the title “Restricted Authorisation to deal in foreign exchange”. Drafts of these chapters have been placed at the State Bank’s website. The banks and other stakeholders are encouraged to furnish their suggestions / proposals on the revised chapters latest by July 14, 2017, it added.