Rebate sought: exchange companies want to bring in $500 million more per month

Exchange companies are seeking rebate on home remittances to bring an additional amount of $500 million monthly. A delegation of Exchange Companies Association of Pakistan lead by Chairman Malik Bostan will meet State Bank of Pakistan (SBP) Governor Dr Shahid Hafeez Kardar Thursday, April 7 at the SBP head office to discuss the issues relating to exchange companies.
Bostan said in the first meeting in January 2011, the newly appointed governor had allowed export of three major currencies - euro, pound sterling and UAE dirham and following this decision exchange companies surrendered some $225 million in the interbank market during March 2011. This step had also helped maintain high reserves, besides strengthening the Pak rupee against the dollar, he added.
"Now the exchange companies are seeking rebate on home remittances, as banks are already getting 25 riyal rebate on $100 home remittances," Bostan said. In addition, exchange companies should also be allowed making agreements with foreign money transfer companies for the fastest delivery of home remittances, he added.
"With this facility, we will be able to deliver money to the beneficiary in two hours. This step would ultimately boost home remittances," he said. Some $500 million will be surrendered in interbank by exchange companies, if the State Bank allowed agreement with foreign money transfer companies, Bostan said.