SBP mulls allowing exchange firms to sell part of remittances.

KARACHI -- The State Bank of Pakistan (SBP) is evaluating a proposal to allow the selling of 10 to 20 per cent of remittances received through exchange companies to bring down the greenback rates by improving its availability in the open market.

Currently, the exchange companies are required to deposit entire remittances into banks.

An SBP spokesman told Dawn on Friday that a decision to this effect will be taken next week, adding that the central bank will also monitor the dollar rates in the open market.

'The SBP can withdraw the facility if the dollar rates don't come down despite higher inflows in the open market,' said the spokesman.

After taking the final decision, the central bank will issue a circular explaining the mechanism for the exchange companies for using this facility.


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