State Bank to penalize banks over higher dollar rates

State Bank of Pakistan (SBP) has warned banks not to earn profit by quoting high dollar rates against Pakistani rupee.

Addressing the Federation of Pakistan Chambers of Commerce and Industry on Wednesday, SBP Governor Jameel Ahmed said probe has been completed against the banks which were complicit in currency manipulation. The investigation report will be brought to light on January 23, he revealed.  

The governor said the country’s foreign exchange reserves position would improve as it is expected to witness inflows of funds in the coming days. “We are expecting to witness inflows from next week onwards, which would reduce pressure on our foreign exchange reserves,” Ahmed said.

He told the FPCCI audience that the State Bank facilitated shipments under the categories of essential, energy, export-oriented industries, agriculture inputs, deferred payment / self-funded imports and imports for export-oriented projects near completion.