The State Bank of Pakistan (SBP) has amended regulations governing the sale of foreign currency, directing exchange companies to ensure that all forex sold to local individuals for deposit into FCY (foreign currency) bank accounts must now be conducted strictly through account-to-account transfers, eliminating cash handling for such transactions.
In a circular issued to exchange companies, the central bank referred to Chapter 7, Paragraph 5 of the existing regulatory framework and stated that the guidelines have now been revised.
According to the circular, the decision aims to promote a cashless economy. Going forward, all foreign currency sold for the purpose of depositing into FCY accounts of Pakistani residents must be transferred electronically from the exchange company to the customer’s bank account.
Previously, exchange companies were allowed to sell foreign currency in cash, even if the buyer intended to deposit it into an FCY account—provided biometric verification was carried out for transactions of $500 and above, and PKR payment through banking channels was mandatory for FCY purchases of $2,000 or more.
Experts say that following this amendment, money changers will no longer provide cash for FCY intended for deposit; instead, they will directly transfer the funds to customers’ accounts.
The SBP has instructed all exchange companies to communicate the revised guidelines to their staff and ensure strict compliance with the updated regulations.
