The State Bank of Pakistan (SBP) has released the foreign exchange rates for October 05, 2022, providing a detailed overview of the buying and selling rates of various currencies against the Pakistan Rupee (PKR).
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NA committee directs SBP to take action exchange rate manipulators
ISLAMABAD: The National Assembly Standing Committee on Finance and Revenue on Tuesday directed the State Bank of Pakistan (SBP) to take appropriate action against all the banks and exchange companies involved in manipulating volatility of the exchange rate.
The committee also directed the central bank to take appropriate action against elements involved in exchange rate manipulation so that no one dares to play with the economy of the country.
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The committee met under the chairmanship of Member of National Assembly (MNA) Qaiser Ahmad Sheikh, here in the Parliament House.
The committee was of the view that during recent volatility in the exchange rate and the difference between the interbank rate and the rate offered by the Exchange Companies, few banks earned exorbitant profits.
The committee was apprised that few banks and forex exchange companies were suspected of manipulating volatility in exchange rate.
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The SBP taking cognizance initiated strict monitoring of the foreign exchange operations of banks and exchange companies and has initiated inquiry proceedings into the violations made against SBP regulations.
The Governor State Bank Jameel Ahmad further apprised that SME sector was the backbone of the country’s economy which had not been provided with relevant finances which it deserved.
He said that on basis of cash flow the SME sector can avail credit from commercial banks.
Regarding incentives given to the industrial and trading sector during COVID-19, the Governor State Bank said that the Bank adopted multipronged approach to facilitate industrial and trading sector.
He said that those measures included debt rescheduling, financing the large and medium industries for carrying out their operations, besides chalking out measures that helped in avoiding retrenchment during the pandemic.
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He also informed that export based industries were also promoted.
The committee pointed that the measures taken by the SBP were exceptional but the benefits did not trickle down and financial incentives were mostly availed by large scale industry.
The committee directed the State Bank to provide details sector wise about who benefited from those incentives.
The committee also decided to discuss the proposed measures for rehabilitation of the flood affectees, agriculture and commercial sectors in its next meeting.
The committee was of the view that devastation caused by floods was massive and it needed proper continuous fiscal policy measures.
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While discussing the issues of SBP restriction on import of forklifts, the committee was of the view that the industry was suffering and the State Bank should look into this.
The representatives of the Importers Association apprised that due to restrictions imposed by SBP, commercial banks had stopped confirming letters of credits (LOCs).
The Governor State Bank informed that there was no restriction on LOCs opened before 5th July, 2022.
The Committee meeting was attended by Members of the Committee, Minister of State for Finance, Secretary Finance, Chairman FBR, Governor State Bank and other senior officers of the concerned departments.
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Karachi Interbank Offered Rates KIBOR – October 04, 2022
KARACHI: State Bank of Pakistan (SBP) on Tuesday issued the Karachi Interbank Offered Rates (KIBOR) as on October 04, 2022.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 14.87 15.37 2 – Week 14.93 15.43 1 – Month 15.00 15.50 3 – Month 15.49 15.74 6 – Month 15.64 15.89 9 – Month 15.66 16.16 1 – Year 15.69 16.19 READ MORE: Karachi Interbank Offered Rates KIBOR – October 03, 2022
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State Bank’s foreign exchange rates – October 04, 2022
In its latest announcement, the State Bank of Pakistan (SBP) issued the foreign exchange rates for October 04, 2022.
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SBP likely to keep policy rate unchanged at 15%
KARACHI: State Bank of Pakistan (SBP) likely to keep policy rate unchanged at 15 per cent at its policy announcement scheduled on October 10, 2022.
A report issued by Arif Habib Limited stated that the central bank may keep the policy rate unchanged at 15 per cent in the upcoming monetary policy.
To recall, in the last Monetary Policy Statement (MPS) too, policy rate was kept unchanged at 15 per cent. The current pause of the MPC has been dictated by the planned fiscal consolidation in FY23, recent developments in inflation being in-line with expectations, moderation in domestic demand and improvement in the external position.
The recent Balance of Payment numbers show that Pakistan’s current account deficit decreased by 19 per cent YoY to USD 1.9 billion during first two months of the current fiscal year, as against a deficit of USD 2.4 billion during the same period last year.
This YoY decline is mainly on the back of lower imports and jump in exports. With the measures taken by the authorities to curb import along with decline in international commodity prices, current account deficit is likely to remain lower in FY23 compared to FY22’s Current Account Deficit (CAD).
As a result of a contained CAD and disbursement from IMF post successful completion of seventh and eighth review, Pakistani Rupee (PKR) showed recovery against USD in August 2022 which, however, was short-lived and the following month (September 2022), PKR depreciated 4.2 per cent against USD.
However, SBP believes that Pakistan’s external financing needs should be more than fully met in FY23 aided by rollovers by bilateral official creditors, new lending from multilateral creditors, and a combination of bond issuances, FDI and portfolio inflows.
Thus, pressure on the Rupee should lessen while foreign exchange reserves of the SBP should assume the upward trajectory which currently stand at USD 8 billion as of September 23, 2022.
In addition, another positive development since the last MPC meeting has been the decline in international prices of major commodities such as WTI (-12 per cent), Coal (-14 per cent), Brent (-9 per cent), Steel (-2 per cent), Cotton (-18 per cent) and Arab Light (-6 per cent). This bodes well for our external account position, hence providing much needed relief to our trade numbers.
On the domestic front, most of the high frequency (demand) indicators showed moderation to decline in growth on a YoY basis. Attributable to monetary and fiscal tightening, which helped shrink the positive output gap and curtail demand side pressures, we saw decline in sales of petroleum products (-23 per cent YoY), cement (-8 per cent YoY), DAP (-79 per cent YoY) and power generation (-12.6 per cent YoY). Moreover, with recent flood damaged agriculture growth, lower yields of cotton and seasonal crops could weigh on growth this year.
As mentioned in the last MPS, SBP is closely monitoring the inflation trajectory. On the inflationary front, the headline inflation continues to remain in the double digit since November 2021 mainly on the back of uptick in food and energy prices.
In the month of September 2022, headline inflation clocked-in at 23.2 per cent YoY. However, on MoM basis, inflation receded by 1.15 per cent mainly due to cut in electricity cost.
Headline inflation, after peaking in August 2022, has started to taper off. Moreover, it is expected to have peaked in the out-going quarter of FY23 and is likely to come down with high base-effect kicking-in.
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Karachi Interbank Offered Rates KIBOR – October 03, 2022
KARACHI: State Bank of Pakistan (SBP) on Monday issued the Karachi Interbank Offered Rates (KIBOR) as on October 03, 2022.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 14.83 15.33 2 – Week 14.91 15.41 1 – Month 15.01 15.51 3 – Month 15.46 15.71 6 – Month 15.64 15.89 9 – Month 15.67 16.17 1 – Year 15.70 16.20 READ MORE: Karachi Interbank Offered Rates KIBOR – September 30, 2022
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State Bank’s foreign exchange rates – October 03, 2022
The State Bank of Pakistan (SBP) has released the foreign exchange rates for October 03, 2022, offering insights into the buying and selling prices of various foreign currencies in Pakistani Rupees (PKR).
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SBP bars foreign currency transaction without CCTV system
KARACHI: State Bank of Pakistan (SBP) on Friday made it mandatory for exchange companies to make foreign currency transactions in the presence of functional CCTV system.
The central bank in a circular noted that CCTV Systems of Exchange Companies and Exchange Companies of ‘B’ Category should be functional at all times (i.e. 24 hours a day and 7 days a week) as required under existing regulations.
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However, in order to ensure transparency, it has been advised that Exchange Companies and Exchange Companies of ‘B’ Category shall not carry out any business activity during the period in which CCTV system is non-functional at any of their outlet for any reason, including technical faults, until the functionality of the CCTV system is restored.
Moreover, minimum preservation period of video recording through CCTV system has been enhanced from two to six months or until the inspection of the company by SBP, whichever is earlier.
This would ensure availability of CCTV recording for audit/inspection purposes.
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Furthermore, the SBP also made it mandatory for exchange companies to make sales transactions through their bank accounts.
The central bank said that the SBP had amended foreign exchange regulations with an objective to promote documentation and transparency in the foreign exchange transactions between exchange companies.
In terms of revised regulations, it has been made mandatory for Exchange Companies, Franchises of Exchange Companies and Exchange Companies of ‘B’ Category to settle Pakistan Rupee consideration of all foreign currency purchase/ sale transactions conducted among themselves through their bank accounts.
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Following is the circular issued by the SBP for making changes:
Attention of Exchange Companies (ECs) and Exchange Companies of ‘B’ Category (ECs-B) is invited towards instructions contained in Paras 9 (i)(b) of Chapter 3 and Para 12 (i)(a) of Chapter 8 of Exchange Companies Manual, in terms of which, they are allowed to purchase/sale foreign currencies from each other, as per their scope of business.
In order to promote documentation and transparency in the foreign exchange transactions, it has been decided that, henceforth, Pakistan Rupee consideration of currency exchange transactions between ECs, ECs-B and franchises of ECs shall be conducted through the bank accounts of respective ECs, ECs-B and franchises of ECs. Accordingly, the relevant Paras of Exchange Companies Manual would stand amended as under:
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Para 9(i)(b):
Purchase and sale of foreign exchange in “Ready”, “Tom” and “Spot” value dates from/to other Exchange Companies. Further, Exchange Companies, including their Franchises, shall settle Pakistan Rupee consideration of all foreign currency purchase/ sale transactions conducted with other Exchange Companies, Franchises of Exchange Companies, and Exchange Companies of ‘B’ Category only through their bank accounts.
Para 12(i)(a)
Exchange Companies of ‘B’ Category are authorized to deal in purchase and sale of foreign currency notes and coins from individuals, Exchange Companies and Exchange Companies of ‘B’ category in ‘Ready’ value only. Further, Exchange Companies of “B” Category shall settle Pakistan Rupee consideration of all foreign currency purchase/sale transactions conducted with other Exchange Companies, franchises of Exchange Companies and Exchange Companies of “B” Category only through their bank accounts.
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Moreover, Exchange Companies and Exchange Companies of ‘B’ Category are advised to ensure that CCTV should be functional at all times (i.e. 24 hours a day and 7 days a week), as required in terms of Para 1(vii)(c) of Chapter 4 and Para 16B(iii) of Chapter 8, respectively, of Exchange Companies Manual. In cases, where CCTV system is non-functional at an outlet for any reason, including technical faults, Exchange Companies and Exchange Companies of ‘B’ Category shall not carry out any business activities in the said outlet during such time, until the functionality of the CCTV system is restored.
Further, minimum preservation period of video recording as given in Para 1(vii (d)) of Chapter 4 and Para 16B (iv) of Chapter 8 of Exchange Companies Manual shall be six months or until inspection of the company by SBP, whichever is earlier.
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Karachi Interbank Offered Rates KIBOR – September 30, 2022
KARACHI: State Bank of Pakistan (SBP) on Friday issued the Karachi Interbank Offered Rates (KIBOR) as on September 30, 2022.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 14.86 15.36 2 – Week 14.91 15.41 1 – Month 15.01 15.51 3 – Month 15.52 15.77 6 – Month 15.66 15.91 9 – Month 15.69 16.19 1 – Year 15.71 16.21 READ MORE: Karachi Interbank Offered Rates KIBOR – September 28, 2022
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State Bank’s foreign exchange rates – September 30, 2022
The State Bank of Pakistan (SBP) has issued the foreign exchange rates for September 30, 2022, reflecting the buying and selling prices of various foreign currencies in Pakistani Rupees (PKR).
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