Karachi, October 12, 2023 – The State Bank of Pakistan (SBP) has taken a resolute stance in its ongoing efforts to combat regulatory violations within the exchange sector.
On Wednesday, the central bank announced the suspension of authorization for five Exchange Companies – B Category, citing serious violations of the SBP’s regulations and instructions.
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The suspended Exchange Companies include:
M/s International Exchange Company – B (Pvt) Limited
M/s World Wide Exchange Company – B (Pvt) Limited
M/s World Exchange Company – B (Pvt) Limited
M/s Universal Exchange Company – B (Pvt) Limited
M/s United Exchange Company – B (Pvt) Limited
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This suspension, effective immediately, will remain in place until further orders are issued. During this period, all head offices and branches of the aforementioned Exchange Companies have been prohibited from engaging in any business activities.
The SBP’s latest actions are part of a large-scale crackdown against exchange companies suspected of manipulating exchange rate movements, which had been contributing to the significant depreciation of the local currency. The central bank’s proactive measures have yielded a marked improvement in the Pakistani Rupee’s (PKR) value over the past month.
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Notably, the PKR had reached an all-time low of PKR 307.10 against the US dollar on September 5, 2023. However, in the subsequent weeks, the local currency made a remarkable recovery, appreciating by PKR 27.59, which corresponds to a 9 percent gain against the US dollar.
These actions by the SBP reflect the government’s commitment to maintaining the stability and integrity of the country’s financial and exchange systems. By cracking down on irregularities and regulatory violations, the SBP seeks to instill confidence in the local currency and foster a more stable economic environment.
The suspension of authorization for these exchange companies underscores the seriousness of the regulatory breaches and their consequences. As the situation develops, it will be imperative for these companies to rectify any issues and comply with SBP regulations to regain their authorization and contribute positively to the financial landscape in Pakistan.
