WEDNESDAY: In view of recent volatility in the exchange rate and the difference between the interbank rate and the rate offered by Exchange Companies (ECs) and banks to their customers, State Bank of Pakistan (SBP) has increased the monitoring of the foreign exchange operations of ECs and banks.
In this regard, SBP started inspections of a number of exchange companies and banks since August 1.
On Tuesday, August 2, the SBP suspended the operations of four branches of two ECs including Galaxy Exchange Co and Al-Hameed International Money Exchange Co for violating SBP regulations.
The SBP has also imposed monetary penalties on some ECs in the recent past. Due to violations of SBP instructions, arrangements of 13 franchises have been terminated by six different ECs in the recent past.
In order to further assess the performance of ECs, the SBP has also started mystery shopping throughout Pakistan This is to investigate the apprehensions that some ECs are not selling foreign currency to their customers.
A meeting of the Exchange Companies Association of Pakistan has also been called on August 4, 2022.
In a press release on Wednesday, the central bank stated that if needed, it will augment its enforcement actions on the ECs and banks in light of findings of on-going inspections and mystery shopping.
