To curb dollar hoarding and promote transparency in foreign currency transactions, the State Bank of Pakistan (SBP) has announced a new plan to make biometric verification mandatory for purchases of $500 and above at exchange companies.
Strengthening Anti-Hoarding Measures
To combat dollar hoarding, the SBP has introduced a significant change that requires individuals to undergo biometric verification for transactions exceeding $500 at exchange companies.
This move is part of a broader strategy to enhance financial transparency and accountability within the foreign exchange market.
Reduced US Dollar Purchase Limits for Travel
The SBP has taken measures to reduce US dollar purchase limits for travel purposes. Previously set at $10,000, the new limit now stands at $5,000.
Additionally, the annual restriction has been lowered from $60,000 to $30,000, ensuring that foreign currency purchases for travel remain within controlled limits.
Stricter Regulations for Large Transactions
Individuals looking to purchase $2,000 or more from exchange companies are now required to use their PKR accounts for these transactions.
This stipulation adds an extra layer of accountability to significant foreign currency purchases, aligning with the SBP’s efforts to promote responsible financial practices.
Daily and Annual Purchase Limits
In line with its commitment to monitor and regulate foreign currency transactions, the SBP has imposed daily and annual purchase limits. The daily restriction caps purchases at $10,000, while the annual limit is set at $100,000.
These limits aim to prevent excessive foreign currency acquisition and maintain stability in the currency market.
Collaboration with the Federal Investigation Agency
The SBP is collaborating with the Federal Investigation Agency (FIA) and other relevant authorities, for a multi-pronged approach to tackle illegal foreign exchange operations. This collective effort ensures that stringent measures are in place to thwart unlawful activities in the foreign currency market.
Building on Past Efforts
It’s worth noting that the SBP first attempted to implement a similar plan in 2021, requiring biometric verification for all foreign currency purchases of $500 and above.
As these measures take effect, Pakistan’s financial landscape is set to undergo significant improvements in regulating foreign currency transactions, bolstering economic stability, and curbing the hoarding of dollars.