The Exchange Companies Association of Pakistan (ECAP) has implemented a new mechanism for issuing exchange rates for six major currencies, following directives from the State Bank of Pakistan (SBP).
Previously, two different closing rates were provided by ECAP and the Forex Association of Pakistan (FAP) for six major currencies.
The SBP devised a new mechanism on December 22 to compile open market exchange rates, aiming for transparency and credibility.
The SBP directed ECAP to implement the new mechanism by December 26, 2023. Twelve contributing exchange companies are now submitting closing rates for six major currencies that are, US dollar (USD), euro, pound sterling (GBP), Japanese yen (JPY), UAE dirham (AED) and Saudi riyal (SAR). ECAP now compiles and issues a single rate for the selected currencies.
The new mechanism enhances transparency and simplifies the process, ensuring a single rate is disseminated to stakeholders.
The average buying and selling rates for the six currencies are now provided by ECAP, fulfilling the SBP’s directives for a more streamlined and transparent exchange rate system.
The rates are disseminated by 5:00 PM, providing stakeholders with timely and reliable information.
