The Exchange Companies Association of Pakistan (ECAP) has praised the State Bank of Pakistan’s (SBP) efforts to maintain exchange rate stability, as well as the announcement of a method for calculating open market exchange rates of USD dollar (USD), euro, pound sterling (GBP), Japanese yen (JPY), UAE dirham (AED) and Saudi riyal (SAR).
ECAP General Secretary Zafar Paracha lauded SBP’s reforms for Exchange Companies and the exchange rate and said the ECAP fully supports these efforts. He added all Exchange Companies would implement the mechanism for calculating open market exchange rates on 26 December (today).
Paracha said traders were already using this method for determining accurate rates of the selected currencies. Still, with the SBP’s announcement, it will be strictly and formally enforced, he added.
He remarked that ECAP’s role has grown as it would now guarantee the accuracy of released data.
Notably, SBP has selected/notified 12 leading Exchange Companies with a large market share to provide daily exchange rates for six main currencies, including USD, EUR, GBP, JPV, AED, and SAR.
The contributing ECs will submit the market rates (buying and selling) to ECAP’s dedicated email between 4:00 PM and 4:30 PM, and the contributing Exchange Company will be required to quote the closing levels to ECAP.
Will this ECAP announcement reflect actual transactions and the actual rate at which the ECAP is willing to buy and sell?