Overview
- A new SBP circular requires exchange companies to execute sales intended for foreign-currency account deposits through account-to-account transfers rather than cash.
- Banks have been directed not to pay out cash dollars to customers who do not hold foreign-currency accounts.
- Cash purchases above USD 500 now require a stated purpose, biometric verification and supporting documents, including for students, travelers and pilgrims.
- Industry participants expect cheque or interbank transfers to add clearance times of roughly five days for dollars and as long as 20–25 days for euros or pounds.
- Analysts and dealers say the shift enhances traceability and AML oversight while likely channeling more business to bank-owned exchange outlets and constraining independent money changers.