State Bank urged to take action against forex firms

KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Saturday urged the State Bank of Pakistan (SBP) to take action against foreign exchange companies, which are not accepting old-design $100 currency notes.

KCCI President Shamim Ahmed Firpo, in a statement, said exchange companies were charging 3 to 4 percent fee to exchange the old bills with the new ones or convert them into rupee or any other currency. Firpo said the chamber received complaints from its members who bore 3 to 4 percent fee upon exchange.

US introduced new-design bills five years back.  “When the old-design notes are acceptable all over the world then why exchange companies are reluctant to exchange the same in Pakistan,” he asked. 

KCCI president said moneychangers are buying old-design notes at a cheaper price and managed to exchange the same in Dubai without incurring any cost, thus making heavy profit.

The issue of old- and new-design bills keeps resurfacing  after intervals.

A similar incident took place in January this year. Firpo said moneychangers, who are not accepting or giving lower value of dollar bill, blamed the practice on banks that usually reject the accusation.