SBP dollar outflow monitoring alert is issued after the rising tension between India and Pakistan. SBP (State Bank of Pakistan) instructed all banks to track the US dollar’s movements out of the country closely, as authorities expected a surge in demand for American currency due to an increase in the ongoing conflict.
However, citizens and businesses related to currency exchange in the official interbank system and the open market both have reported that there has been no significant rush to buy dollars and the demand for dollars often referred to as “greenbacks,” has not risen, despite the potential anxieties.
Moreover, according to a currency trader, more than 90% of the money sent to Pakistan by overseas workers is facilitated by Indian-based exchange companies, particularly those operating in the Middle East. This financial pathway could be disrupted if the conflict between India and Pakistan continues. The trader also cautioned that in the event of a full-scale war, India might exploit these exchange companies to exert pressure on Pakistan.
Currency market insiders have confirmed privately that the majority of money sent to Pakistan from overseas workers is managed by Indian-based exchange companies. Indian financial firms with networks in the Middle East, Europe, and the United States collect local currencies abroad and transfer the equivalent amount in US dollars to Pakistan through established banking channels.
The State Bank of Pakistan (SBP) provides Indian exchange companies incentive payments ranging from approximately PKR 15 to PKR 20 for each US dollar they transfer. These incentive payments are also made in US dollars.
