SBP Bans Cash Dollars for FCY Accounts, Digital Only Now

KARACHI: The State Bank of Pakistan (SBP) has dropped a hammer: every dollar sold to resident Pakistanis for deposit into foreign currency accounts must now flow only through digital channels — no cash, no exceptions, per The News.

The shock move is designed to choke illegal dollar flows, kill under-the-counter dollarisation, and fortify AML defenses. Physical cash-to-account dollar purchases are now banned; only account-to-account transfers survive.

Behind the curtain: massive open-market dollar buying to feed crypto trading and hawala/black money channels. ECAP Chairman Malik Bostan cheered the crackdown, saying it will plug dollar leakage, bolster reserves, and shield the rupee.

Dealers cry foul: millions of Pakistanis don’t have FCY accounts, instantly crippled for crypto plays. They slam the rule as overkill and a backdoor gift to bank-owned exchange companies, which the SBP has been aggressively expanding.