Centralised FX platform for banks launched

In a significant move towards enhancing the transparency of the foreign exchange market, the State Bank of Pakistan (SBP) has decided to introduce a centralised trading platform called ‘FX Matching’, creating a more inclusive digital financial ecosystem. “Effective Jan 29, 2024, it will be mandatory for ADs (banks) to use FX Matching or FXT Dealing for executing outright interbank FX transactions that impact FEEL (Foreign Exchange Exposure Limit),” said a circular issued by the SBP on Tuesday. The SBP said the objective is to provide the interbank market participants a centralised trading platform that offers FX trading on anonymous basis and real time price visibility. “The adoption of FX Matching platform is a key step for enhancing the depth and transparency of the interbank FX market,” it added. The central bank said FX Matching will be available to all authorised dealers (hereinafter referred as participants) for interbank USD-PKR trading (in ready value labelled as spot on the platform).