ISLAMABAD: A viral claim suggesting that Pakistan intends to shut down all foreign exchange companies in a bid to address its currency-related challenges has been debunked. The assertion, circulated widely on social media platforms, is misleading and lacks crucial context.
🎯📢🎯📢🎯
📌کرنسی ایکسچینج کی مارکیٹس ختم کرنے کا فیصلہ
📌فارن کرنسی ایکسچینج ڈیلنگ صرف اور صرف بینکس کے زریعے ہوگی
🔥کرنسی مافیا اب اپنے انجام کو پہنچے گا 🔥— HACKER BOY 111222®️ (@HackerBoy111222) September 7, 2023
The misleading claim, which gained traction on various online platforms, including X (formerly Twitter) and Facebook, stated, “It has been decided to end the currency exchange market in Pakistan.” The post implied that all foreign currency transactions would henceforth be exclusively conducted through commercial banks, accompanied by a call to “end the currency mafia.”
بڑی بریکنگ نیوز 📢۔۔
کرنسی ایکسچینج مافیا کو لگام ڈالنے کا حتمی فیصلہ کرلیا گیا ۔۔
1۔ کرنسی ایکسچینج کی مارکیٹس ختم کرنے کا فیصلہ ۔۔
2. فارن کرنسی ایکسچینج ڈیلنگ صرف اور صرف بینکس کے زریعے ہوگی 💪۔۔— Tahir Mughal Pmln (@Tahirmughalpml8) September 7, 2023
However, this claim does not accurately reflect the situation. Pakistan’s central bank, the State Bank of Pakistan (SBP), has not initiated a plan to close foreign exchange traders. Instead, the SBP has implemented measures to enhance the capital requirements for these private companies, which could potentially lead to a reduction in the number of such companies operating in the market in the coming months.
Abid Qamar, the spokesperson for the State Bank of Pakistan, clarified that it is incorrect to suggest that exchange companies will be shut down. He emphasized that the exchange company market will continue to exist, but the minimum capital required to operate has been raised significantly. Furthermore, the SBP is actively encouraging banks to establish their own foreign exchange companies.
Framework for Foreign Exchange Companies
Under the new framework, individuals will have access to two types of exchange companies: those established by banks and those operated by individuals or groups.
A statement published on the SBP’s website on September 6 outlined the structural reforms planned for the exchange sector. It mentioned that leading banks involved in foreign exchange business would establish wholly owned exchange companies to cater to the legitimate foreign exchange needs of the general public. Additionally, the minimum capital requirement for operating an exchange company has been raised from Rs200 million to Rs500 million.
Malik Bostan, the chairman of the Exchange Companies Association of Pakistan, affirmed that there is no intention to close all foreign exchange dealers in the country. He clarified that while the capital requirement for running an exchange company has been increased, these companies will not be shuttered. Instead, some may opt to merge with other companies as they adapt to the new capital requirements.
The viral claim suggesting the closure of all foreign exchange companies in Pakistan is misleading. The State Bank of Pakistan is implementing reforms to enhance the capital requirements for these companies, but they will continue to operate, albeit with adjusted capital standards.
