Foreign Currency

Exchange companies: SBP extends cash USD import facility till June 30th

KARACHI: The State Bank of Pakistan (SBP) on Friday has extended import facility of cash US dollar by the Exchange Companies till June 30, 2024.

The SBP, in July last year, allowed the Exchange Companies import of cash US dollars up to 50 percent of the value of the export consignments of permissible foreign currencies within five working days, through reputed cargo or security companies till December 31, 2023.

As per Chapter 5 of Exchange Companies Manual (ECM), ECs were allowed to export permissible foreign currencies other than US dollars through cargo/security companies and repatriate equivalent to US dollars in their foreign currency accounts maintained with banks in Pakistan, within five working days from the date of export of foreign currencies.

ECs can import dollars in cash through cargo or security companies

Initially, the facility was for up to December 2023, now in order to ensure adequate supply of cash USD in open market, the SBP has extended the validity of this facility till June 30, 2024.

All other terms and conditions of abovementioned circular letter shall remain unchanged.

Prior to this facility, ECs were allowed to export the permissible currencies in cash but were required to bring dollars in their bank accounts. Now, with this move, ECs can also bring cash US dollars through cargo or security companies.

As per procedure, 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.

Exchange Companies, at the time of import of US dollars cash through their cargo/security companies, shall give prior written intimation to the Director, Foreign Exchange Operations Department (FEOD), SBP Banking Services Corporation (SBP-BSC), Karachi, and copy the same to the SBP-BSC staff at SBP-Customs Joint Booth at the designated airports.

Copyright Business Recorder, 2024

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