Pakistan's Central Bank Clamps Down on Dollar Cash Flow

Pakistan's central bank introduces measures to curtail cash withdrawals of US dollars, aiming to stabilize the rupee and manage dollar outflows. The new policy restricts dollar cash transactions, mandating account-based transfers and thorough documentation for larger purchases, impacting both banks and currency exchange dealers.

Pakistan's central bank has enacted new measures designed to restrict the flow of US dollars in an effort to stabilize the national currency and manage the country's foreign exchange outflows.

The State Bank of Pakistan has issued a directive prohibiting banks from disbursing cash in dollars to customers lacking foreign currency accounts. Concurrently, currency exchange dealers are ordered to limit cash payouts to USD 500, necessitating additional documentation for further amounts.

This policy mandates that all dollar transactions be account-based, impacting individual buyers and money changers, thereby ensuring greater transparency and curbing undocumented cash dollar stockpiling.

(With inputs from agencies.)