Home »Stocks and Bonds » Pakistan » Each company required to take minimum $250,000 from SBP: moneychangers asked not to speculate on PKR

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  • Apr 26th, 2008
  • Comments Off on Each company required to take minimum $250,000 from SBP: moneychangers asked not to speculate on PKR
Each one of the licensed foreign exchange companies has to take a minimum of $250,000/- in cash from the State Bank of Pakistan in order to overcome the dollar currency shortage on the open market. There are 27 licensed foreign exchange companies and the SBP will be providing them with $6.75million or more if they want.

A decision to this effect was conveyed to the money changers at a meeting held at the SBP Head Office here on Friday. According to well-placed sources, there is no upper limit to purchase dollars at Rs 64.50 from the SBP. However, the mandatory purchase of $250,000 at the rate of Rs 64.50 will have to be returned to the SBP on the same rate by May 15, 2008.

Sources said money changers have been warned not to speculate against the Pak rupee and ensure dollar's availability to buyers strictly at Rs 64.50 by Monday evening. Money changers are of the opinion that the rate of exchange on the interbank market ultimately determined the rate in the open market and if SBP is asking them to sell dollar at Rs 64.50 then it is determined to defend the rate below this on the interbank market.

Money changers can bring in any amount of dollars through telegraphic transfers and take the same in cash from the SBP. According to sources, the SBP has taken this decision following a pandemonium on currency open market where Pak rupee weakened as low as 67 against dollar on Thursday.

Copyright Business Recorder, 2008


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