KARACHI: The State Bank of Pakistan’s stipulation for submission of identification proof before buying and selling of foreign currency more than $500 has caused dollar supply in the kerb market to have decreased by half.
Earlier in the week, SBP via a circular had directed “to further strengthen the AML/CFT regime for Exchange Companies, it has been decided that henceforth, for all foreign currency buy and sell transactions equivalent to USD 500/- or above, Exchange Companies and Exchange Companies of ‘B’ Category shall obtain and retain copies of identification documents i.e. Computerized National Identity Card (CNIC) / National Identity Card for Overseas Pakistanis (NICOP) / Pakistan Origin Card (POC) / Passport (having valid visa on it or any other proof of legal stay of a foreigner in Pakistan).”
This move by the central bank was taken to comply with Financial Action Task Force (FATF) guidelines which are set to review whether to place Pakistan on the ‘grey list’ in June.
The shortage of the US dollar caused the price to shoot up to Rs118.7 in the kerb market in intra-day trading on Thursday.