CNIC must for buying, selling above $500: SBP

Published May 23, 2018
A dealer sells US dollars to a buyer at a foreign currency exchange in this file photo.
A dealer sells US dollars to a buyer at a foreign currency exchange in this file photo.

KARACHI: The State Bank of Pakistan on Tuesday decided that all foreign currency transactions, whether buying or selling of $500 or above through the exchange companies will now require Computerised National Identity Card (CNIC).

The decision has been taken in the wake of mounting pressure on Pakistan with the impending placement of the country on the so-called “grey list” of the Financial Action Task Force (FATF). Earlier, transactions of up to $2500 were allowed without providing a CNIC or any other form of identification.

The identification list included CNIC, National Identity Card for Overseas Pakistanis (NICOP), Pakistan Origin Card (POC), and passport (having valid visa on it or any other proof of legal stay of a foreigner in Pakistan).

The decisions proved a shock for the exchange companies who were trying to convince the central bank that purchasing of dollars (by exchange companies) and other currencies should not be restricted to just $500.

An emergency meeting is expected in the State Bank on Wednesday to discuss the new situation emerging out of the decision which, the exchange companies claim, can negatively impact the exchange rate regime. “We are ready to support the country. Whatever we can do but we have requested the central bank to hear our grievances related to this decision” said Malik Bostan, President Forex Association of Pakistan.

Exchange companies said they should be allowed to purchase dollars without restrictions as were allowed earlier. The buyer of dollars from market should be restricted and identification should be compulsory for them, they said.

“We have a meeting in the State Bank building on Wednesday and hope a better situation will evolve,” Bostan said. The exchange companies believe that with the latest restriction, the illegal traders will attract most of the sellers which could create an constrict the supply of dollars to the open market..

Published in Dawn, May 23rd, 2018

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...
Islamabad protest
Updated 20 Nov, 2024

Islamabad protest

As Nov 24 draws nearer, both the PTI and the Islamabad administration must remain wary and keep within the limits of reason and the law.
PIA uncertainty
20 Nov, 2024

PIA uncertainty

THE failed attempt to privatise the national flag carrier late last month has led to a fierce debate around the...
T20 disappointment
20 Nov, 2024

T20 disappointment

AFTER experiencing the historic high of the One-day International series triumph against Australia, Pakistan came...