(CTN News) – The State Bank of Pakistan has made a significant policy shift by allowing exchange companies to import US dollars against the value of their export consignments.
This move aims to ease the dollar shortage and bridge the gap between open market and interbank rates in the country.
The circular issued by the central bank outlines the process, allowing exchange companies to import cash US dollars through reputable cargo/security firms, when required, within five working days.
SBP’s Circular Offers Temporary Dollar Import Window for Exchange Companies
However, the central bank has set a condition to closely monitor the inflow of dollars. During the period until December 31, 2023, exchange companies are not allowed to import cash US dollars exceeding 50% of the value of their export consignments.
This measure aims to strike a balance between supporting the economy with sufficient dollar liquidity and preventing any potential adverse impacts on the foreign exchange reserves.
To maintain transparency and regulatory compliance, the central bank emphasizes that exchange companies must ensure adherence to all relevant laws and regulations, both in Pakistan and in the jurisdiction from where the US dollars are being imported.
Proper documentation and accurate recording of all transactions related to cash imports are mandatory and must be reflected in their financial records.
This timely decision has been welcomed by the Exchange Companies Association of Pakistan (ECAP), with its General Secretary, Zafar Paracha, expressing appreciation for the move.
He believes that this policy shift will address the dollar shortage and contribute to stabilizing the exchange rates, benefiting the financial sector and the economy as a whole.
In conclusion, the State Bank of Pakistan‘s decision to allow exchange companies to import US dollars against their export consignments is a positive step towards managing the currency market’s volatility and meeting the country’s dollar demands.
The central bank aims to balance ensuring adequate dollar liquidity and maintaining the economy’s stability by providing a temporary window for dollar imports.