KARACHI – The State Bank of Pakistan (SBP) has permitted currency exchange companies of the country to import 50 percent of dollars from abroad as rupee hit new low after demand of the greenback surged following the lift of the restrictions on import.
The local currency has been registering losses during the last eight trading sessions after surge in demand for the dollars as the government allowed the opening of Letters of Credit (LCs) that was imposed due to a shortage of the US dollar.
The central bank on Tuesday updated instructions for the import of dollars, stating: “Exchange Companies, on need basis, may import cash US Dollars against the value of their export consignments of permissible foreign currencies within five working days, through reputed cargo security companies.”
“This arrangement shall initially be in place till December 31, 2023 and will be subject to the condition that total cash US Dollars imported by an Exchange Company during this period shall not exceed 50 percent of the value of its export consignments,” read a circular sent by the bank to the currency exchange companies.
Exchange Companies Association of Pakistan (ECAP) Chairman Malik Bostan has welcomed the decision of importing dollars against the export of other currencies.
He said the dollar continued to strengthen against rupees despite inflows from Saudi Arabia, the United Arab Emirates and the International Monetary Fund (IMF). He said the latest measures would held improve the dollar liquidity in the local market.
The central bank has asked the exchange companies to include arrangement in their deal with the overseas firms.
“The system generated deal ticket shall also include particulars of the amount to be imported as cash US Dollars, if any, out of the total export consignment,” it directed.
In order to avail the option, the SBP has directed exchange companies to provide written intimation in advance.
https://en.dailypakistan.com.pk/20-Jul-2023/sbp-plans-to-launch-pakistan-s-first-digital-currency
