SBP Sets New Guidelines for Foreign Currency Transactions

Foreign Currency Transactions: State Bank of Pakistan has defined new limits for foreign currency in order to further curb the increasing price of the dollar against the Pak Rupee.

On Nob 8, 2022 State Bank issued a circular to decrease the amount of foreign currency one can carry while traveling abroad.

Earlier this limit was USD 10,000 for adults above 18 years of age and USD 5000 for below-age travelers.

Whereas the annual limit to carry foreign currency was USD 60,000 and USD 30,000 respectively.

Now SBP has halved the foreign currency one can carry per travel and on annual basis.

The new limit for travelers above 18 years of age for foreign currency will be USD 5000 and USD 2500 for those below 18 years travelers per visit. Whereas the annual limit will be USD 30,000 and USD 15000 respectively.

Further to this State Bank has asserted one the provision of declaration while taking this amount as foreign currency with travelers while traveling abroad.

The declaration will contain certain information regarding the purpose or need to carry foreign currency in the form of the US Dollar or any other currency equivalent to the above-given limits.

State Bank has set the limits for use of debit and credit cards for cross-border transactions.

As per the State Bank observations, customers are engaged in business transactions while using their debit and credit cards which do not comply or match with their profiles in the banks.

While the time of the Bank account opening Bank ask the customers for their source of income, monthly and annual income and expected threshold of transactions.

But as per SBP observations, people are not following the profiles of their risk categories in the banks while using their debit and credit cards.

Further to this State Bank has defined a limit which will be USD 30,000 per annum for a single person.

Whereas State Bank has asked the banks to have an eye on the purpose of the transactions which must be personal in nature as State Bank has defined a separate mechanism for Business transactions.

The banks now onward will monitor the nature of the transactions from the personal accounts of the customers while using debit and credit cards in cross-border transactions.

The banks will also give awareness to customers regarding the transactions to match their risk profiles and must be personal in nature specifically when doing cross-border transactions.

State Bank circular is available in this link regarding the new limits for foreign currency carrying while traveling abroad and the use of debit and credit cards while cross-border transactions.

Also Read: Best Car Financing Bank in Pakistan through Islamic Ijara

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