SBP Announces Incentive Scheme For Exchange Companies to Attract More Remittance Inflow

 

SBP Announces Incentive Scheme for Exchange Companies.

The State bank of Pakistan is making efforts to improve the inflow of foreign currency, especially US Dollars.

For this purpose, SBP has been introducing various schemes for stakeholders.

this time State Bank has introduced an incentive scheme of the Exchange companies.

under this incentive scheme, the exchange companies will be required to surrender 100% of the home remittances received by them in the interbank market.

There would be two major benefits if the exchange companies surrender all the remittances they receive in interbank market.

First, the inflow of the foreign currency will be increased and pressure on Pak rupee will be reduced would ultimately result in strengthening the local currency against the foreign currencies.

2ndly the liquidity of the foreign currency in the interbank would be enhanced if the exchange companies surrender all the remittances they received on daily basis.

SBP Announces Incentive Scheme that will give Rs.1 against each USD surrender by the exchange companies in the interbank market.

State bank has introduced this incentive scheme for exchange companies with the approval of the federal Govt.

Earlier to this, the exchange companies were required to surrender 15% of the remittance in the interbank market.

Exchange companies attract home remittances with the help of money transfer operators like Ria International, MoneyGram, etc in their accounts maintained in banks in the country.

In order to make this scheme implemented, SBP has amended the regulations of the inward home remittance disbursement in the interbank market.

Now the exchange companies will surrender home remittances equal to USD in the interbank market on the same day.

As its a fact that these exchange companies operating in the country attract handsome remittances hence is obvious as that if the scheme is completely followed by the exchange companies then the liquidity of foreign exchange in the interbank market will improve and exchange companies will attract more home remittances from the remitters abroad.

This incentive scheme will be effective from 4th February 2022.

The incentive rate Rs.1for each USD surrender will remain fixed irrespective of exchange rates.

SBP Circular letter in this regard can be accessed from at the following link:
SBP Circular 

SBP Instructs Banks to Establish person to Person Transfer Through Raast

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