SBP allows ECs to trade 20% of remittances

November 4, 2022 (MLN): The State Bank of Pakistan (SBP) has allowed Exchange Companies (ECs) to trade 20% of remittances in the open market to ease pressure on the rupee.

Earlier, ECs had to surrender 100% of the remittance at the interbank.

However, during Thursday's meeting with the SBP Governor, ECs requested 50% of the remittances be sold to the public because they are running out of greenback in the open market.

On the request of ECs, the Governor SBP allowed companies to sell 20% of their inward workers’ remittances to the open market while the remaining 80% of remittances will be surrendered in the interbank market.

Furthermore, the ECs also requested to review the trade policy with Afghanistan and ban the dollar trade.

The exchange company officials also suggested reducing the travel quota from $10,000 to $5000.

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