SBP curbs fail to dent appetite for dollars

KARACHI: Confidence in the US dollar remains high in Pakistan, with residents depositing greenbacks worth Rs87 billion in the first nine months of the current fiscal year.

Making dollar deposits has become difficult due to strict rules imposed by the government and the State Bank of Pakistan (SBP) to curb the outflow of US currency.

The SBP data showed that Resident Foreign Currency Deposits (RFCD) recorded a net withdrawal of Rs9bn in 9MFY25. The central bank does not provide data in dollar terms.

Foreign currency (such as US dollars, British pounds, euros, and Japanese yen) deposits are bank accounts maintained by individuals or entities residing in Pakistan under the guidance of the State Bank. These accounts allow residents to hold, manage, and transact in foreign currency, providing a hedge against local currency depreciation and facilitating international transactions.

Greenback deposits rose to Rs87bn in 9MFY26

Greenback deposits rose to Rs87bn in 9MFY26

However, Pakistanis bought foreign currency (mostly US dollars) in FY25, but most of it was not deposited. It was later disclosed that dollars were being used to buy cryptocurrencies, which are not legally traded in Pakistan.

The State Bank recently initiated steps to formalise the cryptocurrency market, breaking a long-standing ban through the new Virtual Assets........

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