ISLAMABAD: Pakistan’s central bank has directed all exchange companies to seek prior permission for export of US dollar currency notes which had been allowed last month to boost the foreign exchange flow into the interbank market.
The State Bank of Pakistan’s directive comes at a time when the rupee is depreciating against the US dollar in the interbank market despite the disbursement of $1.16 billion by the International Monetary Fund (IMF) last week which marked the revival of the Extended Funded Facility program.
The rupee lost Rs2 against the US dollar in the interbank market on Wednesday, as the greenback continued to strengthen globally with the dollar index.
“The US dollar is in short supply in the market now, and the state bank has taken the right decision at the right time to restrict its export,” Zafar Paracha, general-secretary of the Exchange Companies Association of Pakistan (ECAP), told Arab News.
The central bank through a notification effective from today (Wednesday) said that exchange companies “shall seek prior approval from SBP for such export of USD currency notes.”
“Exchange companies are advised to ensure meticulous compliance with these instructions,” the notification read.
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