KARACHI: The State Bank of Pakistan (SBP) has given permission to authorized foreign exchange dealers to buy US dollars on the interbank market for the purpose of settling card-based cross-border transactions with global payment systems like Visa and MasterCard.
The banking regulator allowed banks and financial institutions to purchase US Dollars (USD) from Interbank Markets for settlement of card-based cross-border transactions with International Payment Schemes (IPS) such as Visa and Mastercard.
“It has been decided to allow authorized dealers to purchase USD from Interbank for settlement of card-based cross border transactions with IPS,” read a circular issued by the central bank on Wednesday.
The move, which reduces demand-side pressure on exchange companies, is aimed at facilitating customers get a lower rate on the US dollar that has seen a widening gap between the interbank and open markets.
The gap between the Open Market and Interbank widen to Rs 29 against the US dollar due to surge in demand from pilgrims and Credit Card Payments.
The US dollar is trading at Rs 314.0 in the Open Market as compared with Interbank Closing of Rs 285.47.
Earlier, the Commercial Banks were allowed to purchase from any exchange company for settlement of card based cross border transaction with IPS such as Visa, Mastercard etc.
