All Authorized Dealers
In Foreign Exchange,

Dear Sirs,

EXCHANGE RISK COVERAGE FOR REPATRIABLE LOANS

Attention of the Authorized Dealers is invited to F.E. Circular No.93 dated the 28^th October, 1990 on the captioned subject.

2. It has been decided to raise the minimum rate of exchange risk coverage fee on reportable loans from 7.50% per annum to 10% per annum. The above instructions will come into force with effect from the 25^th January, 1994. In other words, the revised instructions would apply to the covers taken on or after the 25t^h January, 1994. The form for calculating the rate of exchange risk coverage fee for repatriate loans as laid down in F.E. Circular No.70 dated the 18^th November, 1986 will, however, remain unchanged.

3. As a consequence of the above, the figure of "7.50% appearing in the last line of para 17 - Chapter IV of the Foreign Exchange Manual (7^th Edition 1992) may be replaced by "10.0 %".

4. Please bring the above to the notice of your constituents.