State Bank of Pakistan (SBP) issued a statement to clarify confusions related to revision in Foreign Exchange Manual regarding sale or purchase of foreign currencies by the bank branches.
SBP clarified that before the recent revision in Chapter 11 of Foreign Exchange Manual, authorised branches of Commercial Banks had the permission to deal in foreign currency. This is a misrepresentation or confusion that SBP has given permission to the banks to buy and sell foreign currencies by amending the existing Foreign Exchange Rules.
Previously, news reports suggested that SBP has amended rules to allow Bank Branches to deal in Buy and Sell of Foreign Currency. This created fear among Currency Exchanges that Banks will take over the business. But SBP has clarified that no new instructions are issued and Banks already have permission to deal in Foreign Currencies.