Here i am sharing the latest changes in Pakistan’s currency exchange rates, as the ECAP adopts a streamlined, SBP-directed mechanism. Stay informed about the new transparent and efficient process affecting major currencies.
The Exchange Companies Association of Pakistan (ECAP) has recently started using a new method for setting foreign currency exchange rates, following orders from the State Bank of Pakistan (SBP). Before this change, two different closing rates for major currencies like the US dollar, euro, pound sterling, Japanese yen, UAE dirham, and Saudi riyal were announced at the end of each business day—one by ECAP and the other by the Forex Association of Pakistan (FAP).
The SBP, aiming to make the currency market more transparent and trustworthy, developed a new system for determining the market exchange rates of these major foreign currencies. ECAP was instructed to start using this new method by December 26, 2023.
Now, under the SBP’s rules, twelve exchange companies, including names like Pakistan Currency and Dollar East, send their closing buying and selling rates for these six key currencies to a specific email address managed by ECAP. ECAP then combines these rates and announces a single rate for each of the six currencies.
According to a Business Recorder report, ECAP’s General Secretary said that this new approach to calculating exchange rates for these currencies is straightforward, clear, and transparent. He mentioned that all exchange companies are fully involved and supportive of this initiative.
As per the SBP’s instructions, ECAP shares the average buying and selling rates of these six primary currencies with all relevant parties by 5:00 PM. However, it’s important to note that there was a delay in announcing the rates in one instance, where they were released at 6:00 PM on a Wednesday. This delay was due to the implementation of this new system for the first time. It’s expected that as exchange companies get more used to this process, the rates will be announced more promptly in the future.