Mohsin Siddiqui (Chief Reporter)
The Exchange Companies Association of Pakistan (ECAP) has expressed its appreciation for the State Bank of Pakistan’s (SBP) proactive efforts in ensuring stability in the exchange rate. The SBP recently unveiled a mechanism for calculating open market exchange rates for select foreign currencies, a move hailed by Zafar Paracha, General Secretary of ECAP.
Paracha expressed optimism that the SBP’s measures would contribute to increased transparency and authenticity in the open currency market exchange rates for foreign currencies. He lauded the remarkable reforms implemented by the SBP, emphasizing ECAP’s full endorsement of these initiatives.
The State Bank of Pakistan, in its announcement on Friday, outlined the mechanism for issuing daily end-of-the-day open market exchange rates for six major currencies. These currencies include the US Dollar (USD), Euro, Pound Sterling (GBP), Japanese Yen (JPY), UAE Dirham (AED), and Saudi Riyal (SAR).
Paracha highlighted the Exchange Companies’ full support for the SBP in maintaining stability in the currency market. He revealed that all Exchange Companies are set to implement the SBP-advised mechanism for calculating daily open market exchange rates starting from December 26, 2023.
As part of the mechanism, the SBP has identified 12 leading Exchange Companies with significant market share. These companies will provide daily exchange rates for the six major currencies, following a strict and official implementation of the SBP’s guidelines.
Paracha clarified that the contributing Exchange Companies will submit buying and selling rates for the selected currencies between 4:00 PM to 4:30 PM daily to ECAP’s dedicated email. Additionally, the contributing companies must quote closing levels, ensuring accuracy in the published data rather than providing averages for the day or stale rates.
With these developments, the role of ECAP becomes increasingly crucial, as it is now responsible for guaranteeing the accuracy of the published exchange rate data.
