21 August 2004	Saturday	04 Rajab 1425

KARACHI, Aug 20: The hotels that have the permission to deal in foreign exchange can now sell to exchange companies all the foreign currencies except for US dollar, pound sterling and euro.

The Exchange Policy Department of the State Bank issued a letter on Friday to Pakistan Hotels Association informing them of this decision. Executives of foreign exchange companies say that hotels are supposed to sell US dollars, pound sterlings and euros to banks. They welcome the SBP decision but say that it would have only a little impact on the exchange companies market.

"Hotels collect smaller amounts of foreign currencies other than dollars, pounds and euros. So when they start selling all minor currencies to exchange companies it will have a little impact on the volumes of currencies we get daily," said General Secretary of Exchange Companies Association of Pakistan Munaf Kalia.

Exchange companies receive $5-10 million worth of non-dollar currencies daily from across Pakistan through exchange companies of B category that were previously operating as money changers.

SBP officials say that the central bank has allowed hotels to sell minor foreign currencies to exchange companies to save them from the difficulty they faced in selling these currencies to banks.