On Thursday the State Bank said that Exchange companies were allowed to cover risks associated with the realization of export proceeds through forwarding sale transactions with banks up to five working days against the export proceeds in US dollars.
The bank will facilitate the exchange companies into managing the exchange of the export of permissible foreign currency notes.
As well as sell forward the exports proceeds received from abroad be it in US dollars or another currency to banks as opposed to the exports of permissible foreign currencies made through cargo.
Malik Bostan President of Forex Association of Pakistan said The exchange companies had demanded the facility for the provision of forwarding cover which has been fulfilled.
The State Bank of Pakistan’s decision to provide forward booking will bring stability to the exchange rate whilst the volume of exports increases.
Furthermore adding that once the traveling restriction of expatriate Pakistani’s residing in other countries has been lifted the number of currency exports and the imports of US dollars will increase eventually.
Compared to the $2.5 billion in the fiscal year of 2020, it is expected to bring $3 billion in exports during this current fiscal year.