State Bank of Pakistan (SBP) has been aggressively taking action against the exchange companies which are involved in malpractices or unable to comply with its regulations, as it suspended the authorization of two more exchange companies including Orient Exchange Company and Best Way Exchange Company.
SBP has suspended, with immediate effect, the authorization of two Exchange Companies for three months due to serious violations of regulatory instructions.
SBP has advised both companies to strengthen their Internal Control Functions and submit a report, of corrective measures to be taken in this regard, to SBP. Both Exchange Companies, their Head Offices, and all branches/outlets have been restricted from undertaking any kind of business activity during the suspension period.
The banking watchdog also suspended the operations of different exchange companies in the last few months for violations of its rules.
In September 2022, the SBP tightened foreign exchange regulations with the objective to promote documentation and transparency in foreign exchange transactions between exchange companies. Since then the regulator has been taking strict action against exchange companies failing to abide by its regulations, which also caused the depreciation of the Rupee against the Dollar.