No plan to shut down exchange companies: SBP

The State Bank of Pakistan (SBP) has reiterated that there is not plan to shut down Exchange Companies. A meeting of exchange companies with State Bank's officials was held on Wednesday evening. During the meeting Malik Bostan President Forex Association of Pakistan (FAP) said that there are rumours in the market that SBP has decided to close the exchange companies and banks will be allowed to conduct exchange business.
Replying to these rumours, Syed Irfan Ali Shah Executive Director SBP said that SBP has already clarified that there is no plan to shut down the exchange companies. In this regard, he said that, no change has been made in instruction on purchase of foreign currency notes by banks as they are already permitted to deal in foreign currency notes, coins, deposits, credits, drafts and traveler's cheques.
He said that SBP is fully facilitating the exchange companies to bring more foreign exchange in the country. Irfan said that SBP is also in favor of rebate on remittances for exchange companies like banks.
Talking about the proposed amendment in foreign exchange act, he said that there will be no restrictions on exchange companies for carrying cash, however individual will be required to take prior permission from SBP for carrying over $10,000 or other currencies equivalent to it. He said that SBP is committed to take action against the illegal currency dealers to end the black market of the foreign exchange.
During the meeting Malik Bostan thanked the SBP officials for continued support and said that exchange companies are bringing billions of dollars foreign exchange into the country without any rebate.
He said that SBP should devise a mechanism to curtail the shortage of greenback in interbank market as there is already massive gap in trade with $58 billion imports and $22 billion exports. He said that exchange companies are largely contributing in the country's economy to strengthen the Pak Rupee. Since 2010, exchange companies has provided some $14 billion to government through the commercial banks and saved some Rs 84 billion on account of rebate being paid to banks by the federal government.
Bostan said that Prime Minister Imran Khan, in a meeting held in May this year, has also asked exchange companies to bring foreign exchange for the country and during the last three months exchange companies have surrendered $55 million to the commercial banks.