State Bank Suspends Exchange Company Authorization in Ongoing Crackdown

State Bank Suspends Exchange Company Authorization in Ongoing Crackdown

Karachi, September 15, 2023 – In a continued effort to combat illegal foreign currency transactions, the State Bank of Pakistan (SBP) announced on Friday the suspension of authorization for an exchange company.

This suspension has been imposed on M/s. Royal International Exchange Company (Pvt) Limited with immediate effect due to violations of SBP rules and regulations.

The SBP’s decision means that M/s. Royal International Exchange Company (Pvt) Limited, including its head office, branches, franchises, and payment booths, is prohibited from conducting any business activities during the suspension period, which remains in place until further orders are issued.

This action marks the third exchange company to face suspension by the central bank as part of its ongoing efforts to curb unauthorized and illicit foreign currency activities.

Previously, on September 8, 2023, the SBP suspended the authorization of M/s. Usman International Exchange Company due to severe violations of rules and regulations. Additionally, the central bank had temporarily suspended the authorization of M/s. Money Link Exchange Company (Private) Limited for a period of three months due to serious violations.

The government has been steadfast in its commitment to stabilizing the exchange rate and bringing it back to normal levels. Recent actions against smuggling and hoarding of foreign currency have led to a significant decrease in the value of the US dollar in both the open and interbank markets.

The State Bank’s actions underscore its determination to maintain strict regulatory oversight and ensure compliance with foreign exchange regulations to protect the integrity of Pakistan’s financial system.

These measures are part of a broader strategy to combat illegal financial activities, promote transparency, and safeguard the country’s economic stability. The SBP will continue to monitor and enforce compliance within the financial sector to uphold the integrity of Pakistan’s currency and financial markets.

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