Aaj English TV

Thursday, October 10, 2024  
06 Rabi Al-Akhar 1446  

State Bank to launch platform for more transparent exchange rate

FX Matching will be effective from January 29, 2024
File photo
File photo

The State Bank of Pakistan (SBP) has announced a new platform, FX Matching, for the interbank foreign exchange market to bring more transparency. A centralized foreign exchange (FX) Trading platform aims to add betterment to the exchange system, reported Business Recorder.

This platform will be effective from January 29, 2024, after that, it will be mandatory for all authorised dealers (ADs) to use ‘FX Matching’ or FXT for interbank transactions.

According to analysts, the system will help to reduce the volatility in the market and will be supportive of a free and fair foreign exchange trading system.

A centralized system has been made to provide a unified platform to participants which offers trading on an anonymous basis and real-time price visibility.

The SBP termed the initiative a key step for enhancing the depth of transparency in the exchange system and added that it is a priority area of SBP Vision 2028 to enter digitalization and innovation in finance.

Additionally, the SBP will electronically receive the report of the deal will be executed by FX Matching in real-time. To ensure real-time reporting, all tickets must be confirmed in the FX Matching and FXT Dealing by both counterparties immediately after the trade.

The platform will assist dealers in dealing anonymously where the participants could be able to hit a quote on the bid of another participant. The bids will be visible for all ADs.

FX Matching gives access to all participants to fix the limit of credit for their counterparts. The minimum lot size will of USD 500,000. The present protocol for FX Swap transactions, which includes FXT Dealing, telephone, and other means, will be followed for transactions concluded with the same counterparty. ADs can trade on FX Matching at the times that SBP periodically announces for interbank FX trading.

In case of the closure of the Federal Reserve Bank of New York, the interbank market will remain open in Pakistan the trading on the FX Matching will be in Tom value.

The SBP advised all ADs and dealers to keep offering the bids on the platform to avoid executing erroneous trades.

For the latest news, follow us on Twitter @Aaj_Urdu. We are also on Facebook, Instagram and YouTube.

SBP

State Bank Of pakistan

Exchange rate