KARACHI, Feb 15: The two exchange companies have finally got the State Bank permission to export non-dollar currencies and money changers have been asked to stop currency export business after February 15, 2003. The money changers have appealed to SBP Governor Dr Ishrat Husain to review this decision.

Officials of the two exchange companies namely H&H Exchange Company and National Bank Exchange Company confirmed that they had got the SBP permission to export non-dollar currencies.

Whereas the first exchange company has started working the other one may become operational anytime this month.

A letter written by Banking Police Department of the State Bank to Collector of Customs also made it clear that exchange companies have been allowed to do currency exports. The letter says the SBP has decided not to extend after February 15 the permission given earlier to the representatives of Forex Association of Pakistan for the export of non-dollar currencies.

“We authorize the representatives nominated by licensed Exchange Companies to take out of Pakistan foreign currency notes other than the US dollars for the purpose of exchange the same abroad into US dollar currency notes subject to making of declaration to the Customs authorities at the Karachi airport at the time of their departure and arrival,” says the SBP letter.

“The US dollars so generated will either be brought back to Pakistan within three working days except for export made on Thursday which they will be required to bring back within five days or remitted to their own foreign currency account for forward sale in the inter-bank market,” the letter further says. “A copy of the declaration made to the Customs authorities at the time of taking out of the foreign currency notes and bringing back of US dollars will be certified by the Customs officials and transmitted to the State Bank on weekly basis.”

FAP REACTS: The Forex Association of Pakistan that groups 479 licensed money changers said in a press statement that the SBP decision to stop money changers from currency export has created unrest among them. “Only two exchange companies cannot handle” the huge volumes of exportable currencies, the statement further said. “This would give rise to hundi and the gap between the inter-bank and the open market currency rate would increase.”