The State Bank of Pakistan (SBP) has revised the Statutory Liquidity Reserve (SLR) requirement of the Exchange Companies from 25 percent to 15 percent of their capital.
The enhanced liquidity with the Exchange Companies will enable them to channel the home remittances and foreign exchange further.
During the year that ended in June 2020, the Exchange Companies channeled home remittances of $1.44 billion through their tie-up arrangements abroad, while this figure stands at $1.67 billion for ten months of the current year (FY 20-21).
This regulatory intervention of the SBP will provide increased liquidity to the Exchange Companies to enable them to play their role in increasing the remittances flow, and the public will be facilitated in the timely and conveniently receiving of home remittances from more than 1,200 outlets of the Exchange Companies across Pakistan.
Presently, 18 of 27 exchange companies of the ‘A’ category are providing home remittances services.
Courtesy: Pro Pakistani