KARACHI-State Bank of Pakistan (SBP) has restricted all the foreign exchange companies from exporting Euros, Pound Sterling and Dirhams for an indefinite period as the rupee suffered a major setback against the US dollar in the open market on Friday and the dollar-rupee parity exceeded Rs 70 during intra-day trading. However, at evening the foreign currency dealers brought back the dollar-rupee exchange close to Rs 68. Through a circular issued on Friday, SBP said it has revised the procedure for the export of foreign currencies as a result the exchange companies are not allowed to export cash in UK Pound Sterling, Euro and UAE Dirhams with immediate effect. The Central Bank warned the exchange companies of a strict regulatory action in case the companies failed to comply with the new instructions. The central bank also directed the foreign exchange companies to close all their existing Nostro Accounts with the foreign banks abroad and bring back the balances held in those accounts into their Foreign Currency Accounts(FCAs) in Pakistani commercial banks latest by May 31, 2008. As per the circular, the SBP has decided that all the permissible inflows/ outflows of Exchange Companies are to be routed only through Foreign Currency Accounts of the exchange companies being maintained with commercial banks in Pakistan. The circular further said that, with a view to focus on the exchange companies on their primary function of promoting home remittances, it has been decided that with immediate effect an Exchange Company will be allowed to effect outwards remittances on behalf of bonafide customers for permissible transactions only to the extent of 75pc of the home remittances mobilised by the company during the preceding month. Through another circular SBP decided that besides existing facility of accepting cash in US Dollars, the State Bank of Pakistan will accept UK Pound Sterling, Euro and UAE Dirhams as well from the authorised dealers against credit in their Nostro Accounts as per the laid down procedure. SBP further said that with a view to focus on the Exchange Companies on their primary function of promoting home remittances, it has since been decided that with immediate effect an Exchange Company will be allowed to effect outwards remittances on behalf of bona fide customers for permissible transactions only to the extent of 75pc of the home remittances mobilised by the company during the preceding month. In this respect, all the Exchange Companies are required to report the above on the enclosed format by 5th day of every month. Commenting on the latest move of the SBP, sources in forex market showed their concerns and claimed that the govt had taken same steps in the year 2001 to retrieve the plummeting value of rupee but it prompted black marketing of the dollar. They anticipated that such steps of the SBP will again pave the way for black marketing of dollar in the open market and may lead to full-fledged revival of the 'Hundi' business.