The foreign exchange selling law has been implemented, according to Exchange Companies Association General-Secretary Zafar Paracha, following orders given by the State Bank of Pakistan (SBP).
It is now difficult for people/traders to buy more than $500 following the introduction of the central bank’s action.
Exchange businesses will be forced to undergo biometric verification for all foreign currency selling transactions worth $500 or more, as well as external remittances, according to the central bank.
This stipulation went into effect today.
However, the biometric verification system of exchange businesses could not be linked to the National Database and Registration Authority (NADRA), according to the Exchange Companies Association, and hence the procedure could not be carried out at this time.
Money changers, according to Paracha, are now not selling anything worth more than $500.
Meanwhile, NADRA officials claim that they have developed a method for tracking foreign exchange transactions.
According to the officials, 24 of the 51 exchange rate businesses have given solutions with a formal agreement.
“19 firms contacted NADRA after the system was described to them; but, owing to a lack of IT infrastructure and capability, these 19 organisations did not return,” NADRA stated.
NADRA has developed a mobile app in response to the challenges encountered by businesses, according to authorities.
“The mobile app pilot project is in the works,” NADRA officials stated, adding that the software is being tested by several firms.
Biometric gadgets with a smartphone app would also be distributed to exchange businesses, according to the statement.
According to NADRA, “the entire process of purchasing and selling cash would be tracked through the app.”
These steps were taken by the central bank to stop the “unwanted” outflow of foreign cash.
The SBP made the decision in response to the local currency’s persistent devaluation versus the US dollar. In today’s interbank market, the Pakistani rupee hit a new all-time low of Rs174 versus the US dollar.
The central bank hopes to improve transparency in foreign currency transactions by exchange businesses by implementing the new requirements.
Travelers visiting Afghanistan will henceforth be limited to carrying only $1,000 per person every visit, with a maximum yearly cap of $6,000, according to the central bank.