The State Bank of Pakistan has made amendments to the foreign exchange regulations and the exchange companies, franchises of exchange companies and exchange companies of ‘B’ category are now required to make transactions and settlements of all foreign currency among themselves through their bank accounts only and strictly not in cash.
The SBP said that the decision has been taken to “promote documentation and transparency in the foreign exchange transactions between exchange companies.”
The central bank has also instructed the exchange companies to keep the CCTV systems functional at all times during any business activity.
Furthermore, the purchase of currencies from money changers has also been made conditional on bank accounts by SBP.
The circular issued by the State Bank said that the exchange companies will now keep their CCTV recordings safe for six months instead of two.
“The CCTV systems of exchange companies and exchange companies of ‘B’ category should be functional at all times (i.e. 24 hours a day and 7 days a week) as required under existing regulations. However, in order to ensure transparency, it has been advised that exchange companies and exchange companies of ‘B’ category shall not carry out any business activity during the period in which CCTV system is non-functional at any of their outlet for any reason, including technical faults, until the functionality of the CCTV system is restored.”
Expressing surprise at the decision, Chairman E-Cap Malik Bostan said that the central bank took the decision without consulting the stakeholders, This would make doing business more challenging, he said.