KARACHI: The central bank on Tuesday has made it mandatory to have computerized National Identity Card (NIC) for foreign currency transactions above $500-dollar denomination for buying and selling purposes.

The ID’s required would either be CNIC, National Identity Card for Overseas Pakistanis (NICOP), Pakistan Origin Card (POC) and passport which should have a valid visa or having proof of legal stay of a foreigner in Pakistan, reported Dawn.

With the FATF ruling looming, the State Bank of Pakistan took this decision under massive pressure and previously up to $2,500 transactions were permitted without needing any proof of identification or a NIC.

This comes as a setback for exchange companies which were trying to persuade SBP to not restrict the buying/purchase of dollars (by exchange companies) and other foreign currencies to just $500.

In this regard, an emergency meeting is expected to be held in State Bank on Wednesday (today) to deliberate the implications of this new decision, which according to the exchange companies could affect exchange rate regime.

“We are ready to support the country. Whatever we can do but we have requested the central bank to hear our grievances related to this decision” said Malik Bostan, President Forex Association of Pakistan.

And exchange companies have demanded they should be permitted to purchase dollars like before without placement of any restrictions.

They added buyers of dollars from the market should be inhibited and make it mandatory for them to provide identification.

Mr Bostan said that a meeting has been scheduled on Wednesday at the State Bank building and expressed hope the situation would improve.

But exchange companies have expressed fears with the latest restriction, illegal traders would engage most of the sellers, which may lead to tightening of dollar supply in the kerb market.