Foreign exchange buying, selling for individuals: LCCI successfully hosts awareness session

LAHORE: The Lahore Chamber of Commerce & Industry (LCCI) successfully hosted an Awareness Session on Foreign Exchange Buying and Selling for Individuals on Thursday.

LCCI President in his keynote speech shed light on the aims and objectives of the awareness session saying that the initiative is aimed to equip participants with vital knowledge and practical skills for navigating the foreign exchange buying and selling techniques.

The session attracted a diverse audience, including businessmen and individuals interested in expanding their understanding of foreign exchange trading. CEO MCB Exchange Amir Nazir and Head Human Resource Sher Afghan also spoke on the occasion.

LCCI President Kashif Anwar said that State Bank of Pakistan has tasked all commercial banks with controlling the demand and supply of foreign currency by establishing their own exchange companies and setting up special counters in key branches across the country.

“This is a great convenience. If someone needs to make payments for medical expenses, education, or requires foreign exchange for travelling, they will get very good rates here, which they can obtain after completing biometric verification”, he added.

He said that these counters will have dedicated staff to provide services to the general public for buying and selling foreign currency. This is a very positive step, as so far, 10 commercial banks have already launched their exchange companies, and two more banks are expected to start this in the coming days.

Kashif Anwar mentioned that these exchange companies are created to facilitate individuals so they can buy or sell foreign currency at the best rates. Additionally, the introduction of these exchange companies has eliminated the risk of counterfeit currency. He said that one of the biggest conveniences in this regard is that someone no longer needs to carry hard cash for foreign currency transactions, as one can use his bank account for payment, which is done online.

During his presentation Sher Afghan, Head Human Resource, MCB Exchange Company, said that the State Bank of Pakistan (SBP) has introduced several reforms to consolidate and regulate the currency exchange sector. The minimum paid-up capital requirement for exchange companies has been raised from PKR 200 million to PKR 500 million. Additionally, ‘B’ category exchange companies are required to either merge with existing companies, upgrade to full-fledged companies, or combine with other ‘B’ category entities to form a full-fledged company. Franchises must also convert to branches through mergers or sales to their franchisers.

He said that an intensified crackdown on foreign currency smuggling and illicit Hawala/Hundi operations is underway. Commercial banks are now mandated to operate fully owned exchange companies, aiming to enhance market control, governance, compliance, transparency, and service standards, ultimately stabilizing exchange rates.

CEO MCB Exchange Amir Nazir Khan said that the SBP is evaluating the business viability of expanding services such as inward and outward remittances, branchless banking, utility bill collection, and ATM installations.

He elaborated that customers must visit exchange company booths in person for transactions, with specific documentation requirements based on transaction amounts, adding that no charges would apply for buying or selling foreign currency, and PKR payments can be made or received through bank accounts.

The officials of MCB Exchange Company told through the presentation that an individual can buy USD 10,000 per day & USD 100,000 per annum or equivalent in other available currencies.

They said that passenger can buy USD 5,000 per visit & USD 30,000 per annum or equivalent in other available currencies while minor passenger can buy USD 2,500 per visit & USD 15,000 per annum or equivalent in other available currencies.

Copyright Business Recorder, 2024