Currency Dealers Unhappy With Banks Replacing Exchange Companies

Currency dealers warned that replacing existing money exchange companies could backfire and allow banks to abuse the situation by manipulating the exchange rate.

Authorities have stated that they are under pressure to close down exchange companies because they are blamed for the rising dollar rate. According to Chairman Exchange Companies Association of Pakistan (ECAP) Malik Bostan, this is an entirely incorrect approach that would help the grey market make a more forceful comeback if exchange businesses close.

ECAP General Secretary Zafar Paracha lamented that banks weren’t penalized after SBP exposed them for currency manipulation. Paracha said SBP failed to bring charges against these banks because of the foreign investors’ element which persuaded the authorities to halt the investigation.

Overall, currency players argue that putting the currency business under one roof would allow banks to take advantage of the exchange rate more so when overseas investors control the majority of these banks.

Despite the complaints of the forex market, the larger consensus of public opinion supports the move. This change will streamline the industry and curb unlawful activities that have plagued the sector. Also, it will encourage larger and more established exchange companies to engage in transactions in a transparent and responsible manner.

Notably, large banks are establishing exchange companies with substantial capital backing, which is seen as a positive step towards resolving liquidity issues and ensuring the stability of the sector.

Besides NBP and HBL already in the game, MCB Bank, UBL, and Meezan Bank have recently announced the formation of exchange companies. Other banks are expected to follow suit in the coming weeks.

  • Happy to know the government is getting rid of these money changers creating a havoc and charging huge commission! Perfect for us who need to convert for genuine reasons!

  • Good initiative to curb black market. Money exchangers are themself responsible to sabotage their businesses. It’s high time govt needs to take concrete step to bust this mafia’s nest else they will take this dollar in thousand rupee.

  • Giving this business in one sector will create the same problem. Private Exchange companies should also be allowed, beside banks running
    their exchange companies, so that it is run on competitive basis.

  • It should be done so early money changers blackmail people this is highly appreciated by the people if government allows bank to make their own money exchange

  • Great move by the Government, these exchange companies were charging exorbitant rates when buying & selling forex like buying @Rs.50 less & selling @80 more than the exchange rates set by the state bank of Pakistan. These exchange companies would not sell to genuine customers sending money to their children studying abroad when the rates are expected to rise.
    At the same time Government should facilitate their customers as well as uptill now it was a hectic process to send money to family abroad. The limits set by Government would make a customer make multiple visits to banks to transfer the money directly into the exchange companies account, the companies would give customer the forex which they had to deposit in their forex account & show the deposit slip to forex company for next transaction.
    Any how we can hope for the things for better.

  • Exchanges, baray wholesellers aur real estate pakistan ke asli baray culprits hain jo lakhon ki tadaad mein roz deemak ki tarha mulk ko khatay hain. Aur inki taraf kisi ka dihan nhi hai..

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