The State Bank of Pakistan (SBP) has changed the rules for buying dollars. It wants to reduce cash use and control foreign currency flows more closely.
Now, if a person in Pakistan buys foreign currency to deposit in a foreign currency (FCY) account, the sale must be done through bank transfer. This means they will not receive cash dollars in hand.
Exchange companies will either send the money directly to the buyer’s FCY account or give a cheque. That cheque must then be deposited into the account. If the FCY account is in another bank, the cheque may take around five days to clear. In the same bank, the transfer can be much quicker.
People who do not have FCY accounts cannot buy dollars just to deposit them.
The rules for buying cash dollars for travel or personal use are still allowed, but they are now stricter. Anyone buying more than $500 in cash must:
- Tell the purpose of buying
- Provide supporting documents
- Do biometric verification
This applies to travellers, students, and Haj or Umrah pilgrims as well.
Experts say these changes will likely benefit bank-owned exchange companies. SBP has already been urging banks to open their own exchange outlets. Now, more people may prefer using bank exchange counters because of easier transfers.
However, there are several predicaments related to the stated policy from the SBP. People buying euros or pounds may face long delays. If these are bought through cheques and deposited in FCY accounts, the process may take 20–25 days, especially when different banks are involved.
Independent money changers are unhappy. They say the new rules make it hard for them to hold cash dollars in bank accounts. This limits their ability to compete with bank exchange companies. Some say they are pushed to sell more in the interbank market instead of managing funds like banks do.
