Business Tech

SBP sets limits for sale of foreign exchange to individuals

Forex reserves fall $260m to $23.23bn

KARACHI: The State Bank of Pakistan (SBP) has issued instructions to exchange companies and set limits for the sale of foreign currency to individuals.

The SBP issued a circular on Monday and revised instructions in the Exchange Companies Manual. The central bank said that exchange companies may sell foreign currency to individuals while ensuring the following limits:

Maximum limit per person per day for buying foreign currency (in the form of cash or outward remittance) from all ECs/ECs-B, is $10,000 or equivalent in other foreign currencies.

For this purpose, the exchange companies shall obtain an undertaking from individual customer at the time of each sale transaction exceeding $1,000 (or equivalent in other currencies) that they have not already reached the limit of $100,000 per calendar year or $10,000 per day from all ECs/ ECs-B and these limits will not be breached after the current transaction.

In order to enhance documentation and transparency and to further strengthen the regulatory regime for ECs/ECs-B, the SBP decided to amend the applicable regulations relating to the business of ECs/ECs-B. Accordingly, the relevant instructions in the following Paras of Exchange Companies Manual stand amended as under:

For all foreign currency sale transactions equivalent to $500 or above, Exchange Companies will retain copies of identification documents i.e. Computerized National Identity Card/ National Identity Card for Overseas Pakistanis (NICOP)/ Pakistan Origin Card (POC) / Passport (having valid visa on it or any other proof of legal stay of a foreigner in Pakistan) after having seen the document in original.

In addition, Exchange Companies shall also carry out biometric verification of Pakistani Nationals for all such transactions and maintain the record thereof. Exchange Companies will also obtain supporting documents related to the purpose (as stated by the customer) of FCY sale transactions, exceeding USD 1,000 or equivalent in other currencies.

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