KARACHI – US dollar continued its downward trend against the Pakistani rupee in both interbank and open markets after the foreign currency hit all-time high, putting pressure on national economy.
The greenback’s value in open market has dropped below the rate interbank in a surprising move. It is currently being traded at Rs302 in open market while per dollar rate stands at Rs304.95 in the interbank market.
A day earlier, the foreign currency declined by whooping Rs11 to close at Rs312 in the open market as compared to Tuesday’s Rs323.
In the interbank market, the rupee had appreciated by 12 paisas to settle at Rs306.98 after it opened at Rs307.10 on Wednesday.
The development comes as State Bank of Pakistan has decided to introduce structural reforms in the Exchange Companies sector.
As part of these reforms, leading banks actively engaged in foreign exchange business will establish wholly owned exchange companies to cater to the legitimate foreign exchange needs of general public. Furthermore, various types of existing exchange companies and their franchisees will be consolidated and transformed into a single category of exchange companies with a well-defined mandate.
In addition, the minimum capital requirement for exchange companies has been increased from PKR 200 million to PKR 500 million.
The exchange companies of category ‘B’ (ECs-B) and franchisees have been offered the following options to transform into mainstream Exchange Companies:
ECs-B may graduate to exchange companies after meeting all regulatory requirements, within three months; otherwise, their license would be cancelled.
Franchisees of exchange companies may either merge or sell operations to the concerned franchiser company, within three months after meeting all regulatory requirements.
For the above purpose, the ECs-B and franchises will submit their conversion plan and seek NOC from SBP within one month.
As per the SBP, the reforms have been introduced to provide better services to the general public and bring transparency and competitiveness in the exchange companies’ sector.
