State Bank of Pakistan (SBP) has suspended the operations of four branches of two Exchange Companies (ECs), Galaxy Exchange Co and Al-Hameed International Money Exchange Co for violation of SBP regulations.

The central bank has also imposed monetary penalties on some ECs in the recent past. Besides, due to violations of SBP instructions, arrangements of 13 franchises have been terminated by six different ECs in the recent past.

The watchdog started inspections of a number of exchange companies and banks on Monday.

It has also started conducting mystery shopping exercises throughout Pakistan to investigate the apprehensions that some ECs are not selling foreign currency to their customers.

SBP has increased the monitoring of the foreign exchange operations of ECs and banks in view of recent volatility in the exchange rate and the difference between the interbank rate and the rate offered by ECs and banks to their customers.

In this regard, a meeting of the Exchange Companies Association of Pakistan (SECP) has also been called on 4 August 2022.

If needed, SBP would augment its enforcement actions on the ECs and the banks in light of findings of the ongoing inspections and mystery shopping, the cantal bank said in a statement.

Source: Pro Pakistan