Dollar Rate Increased Again
Dollar Rate Increased Again: The shortage of the US dollar caused the price to shoot up to Rs.118.7 in the kerb market in intra-day trading.
Earlier in the week, SBP issued a circular directing “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.
Malik Bostan President Forex Association of Pakistan (FAP) said exchange companies bought $2-3 million daily from individuals in the kerb market. He added supply to dealers had fallen to less than $1 million on Thursday.
Bostan said buyers/sellers favored selling and purchasing foreign currency from unregistered and unauthorized currency dealers.
Due to low supply of dollars in the kerb market, the price shot up to an intra-day high of Rs118.7 on Thursday from Rs117.7 on Monday, said Bostan.
Requiring Identification Documents
Earlier, State Bank of Pakistan (SBP) had refused to change its stance over requiring identification documents for all buying and selling transactions of foreign currency in amounts of $500 and above.
The requirement had been announced by the regulator on Monday, prompting outrage from exchange companies who argued that illegal trading of dollars and other currencies would flourish because of this requirement.
For More Information & Videos Subscribe To Our YouTube Channel