KARACHI: The State Bank of Pakistan (SBP) has changed its regulations regarding the purchase of foreign currency, requiring all foreign exchange companies to guarantee that no individual will buy more than $ 10,000 per day and $ 100,000 per calendar year (or the equivalent in other currencies). ) in the form of cash or remittances.
According to a circular issued on Sunday, the changes were introduced to improve “documentation and transparency and to further strengthen the foreign exchange regulatory regime” for conventional and small exchange companies (Category B).
The changes have been made to the instructions contained in paragraph 9 of chapter 3 and paragraph 12 of chapter 8 of the Brokerage Firms Handbook, which defines the scope of activity of brokerage firms.
Under these changes, all foreign exchange companies must ensure that no one buys foreign currency for more than $ 10,000 per day and $ 100,000 per calendar year (or the equivalent in other currencies. ) in the form of money or remittances.
The SBP said these limits were set taking into account the individual’s personal foreign currency needs.
However, a person can still send educational and medical expenses abroad up to a value of $ 70,000 per calendar year and $ 50,000 by bank invoice in accordance with applicable regulations.
If a person wishes to send an amount in excess of these limits, they can contact the foreign exchange department of SBP Banking Services Corporation through their bank.
In addition, foreign exchange firms must now obtain supporting documentation against the sale of foreign currency exceeding $ 1,000 (or the equivalent in other currencies) justifying the purpose of the transaction. In addition, they must not transact against letters of authorization.
The SBP circular further underlined that brokerage firms “will only conduct transactions at authorized points of sale of the company and will not provide delivery services to clients”.
There is no change in the regulations regarding the foreign currency accounts of individuals.
Posted in Dawn, December 20, 2021