The State Bank of Pakistan has changed the way people buy and sell dollars. Cash dollar buying is now restricted. Banks and exchange companies must transfer foreign currency directly into the buyer’s account. Anyone buying more than $500 must show documents and complete biometric verification.
The State Bank of Pakistan has restricted cash dollar transactions across the country. SBP has told banks and exchange companies to send foreign currency directly into people’s accounts instead of giving cash. SBP says this move will support a cashless system.
Anyone who does not have a foreign currency (FCY) account cannot buy cash dollars from the open market. Exchange companies say they will now give a check for every dollar purchase meant for FCY deposits. This check takes at least five days to clear. If the buyer has an FCY account in the same bank as the exchange company, the transfer will take place immediately.
Currency experts say people who buy euros or pounds will face longer delays. A check for euros or pounds can take 20 to 25 days to clear if the FCY account is in another bank.
Experts also say the long check-clearing time may slow international payments.
What Buyers Must Show
SBP has set a new limit. People cannot buy more than $500 without giving a reason. They must also complete biometric verification. Travelers, students, and those going for Hajj or Umrah must give full proof when they buy over $500.
Impact on Exchange Companies
Independent money changers say the new rules hurt their business. They say SBP has blocked them from keeping cash dollars in bank accounts. Because of this, they can only sell foreign currency to banks, not directly to customers.
They say the restriction gives bank-owned exchange companies an advantage, because banks can handle more customers and offer quicker transfers.
SBP has not shared any date for further adjustments.
