Karachi: The State Bank of Pakistan (SBP) Wednesday warned Exchange Companies (ECs) and banks that it has now enhanced monitoring of the foreign exchange operations due to the recent volatility in the exchange rate and the difference between the interbank rate and the rate offered by ECs and banks to their customers.
In a statement, the central bank said that in the wake of the recent inspection, the operations of four branches of two ECs were suspended.
1/2 #SBP increased monitoring of foreign exchange operations of Exchange Companies & Banks in view of recent volatility in exchange rate & started inspections and mystery shopping exercise to investigate customer's apprehensions. See PR: https://t.co/qIFXZe24co pic.twitter.com/Q0x2hAOSBP
— SBP (@StateBank_Pak) August 3, 2022
“On Tuesday (August 2, 2022), SBP suspended the operations of four branches of two ECs (Galaxy Exchange Co and Al-Hameed International Money Exchange Co) for violation of SBP regulations,” the statement read.
The statement further read that the SBP also imposed monetary penalties on some ECs in the recent past. Besides, due to violations of SBP instructions, arrangements of 13 franchises have been terminated by six different ECs in the recent past.
Referring to the news circulating that some ECs are not selling foreign currency to their customers, the central bank said that it has also started conducting “mystery shopping” exercises throughout Pakistan to investigate these apprehensions.
“If needed, SBP would augment its enforcement actions on the ECs and the banks in light of findings of the ongoing inspections and mystery shopping,” it further said.
