The Bank of Khyber (BoK) is making significant moves in the financial sector by planning to establish a wholly-owned Exchange Company (EC). This decision, which was approved by BoK’s Board of Directors on November 3, 2023, involves an authorized share capital of Rs1 billion. The primary aim of this EC is to offer a wide range of foreign exchange services not only to BoK’s customers but also to the general public.
This strategic initiative aligns with recent structural reforms implemented by the State Bank of Pakistan (SBP) to enhance controls and address the challenges associated with fluctuations in the value of the Pakistani rupee in the open market. The SBP has encouraged leading banks to establish wholly-owned ECs to cater to the legitimate foreign exchange needs of the public.
However, it’s important to note that the establishment of this EC is subject to final approvals, including the issuance of a license from the SBP and compliance with other regulatory requirements.
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BoK’s commitment to enhancing services and contributing to the stability and growth of Pakistan’s financial sector is clear through this initiative. By taking a leading role in the establishment of an EC, BoK aims to better serve its valued customers and play a part in addressing the financial challenges faced by Pakistan. This move has the potential to positively impact the financial landscape of the country and ensure a smoother experience for those engaged in foreign exchange transactions.