All
Authorized Dealers
In Foreign Exchange,
Dear
Sirs,
FORWARD
COVER
Please refer
to F.E. Circular No. 33 dated
the 28th March, 1994 as modified vide F.E. Circulars
No. 46 dated 26th May, 48
dated 12th June and 64 dated
22nd September, 1994 respectively on the above
subject. In terms of F.E. Circular
No. 33 of 1994, Authorised Dealers have been permitted
to provide forward cover for export of goods, import of
goods and repatriable foreign currency loans.
2. It has
now been decided to permit the Authorised Dealers to provide
forward cover to the Investment Banks, Leasing Companies
and Modaraba Companies holding restricted Authorised Dealers'
Licences issued by the State Bank of Pakistan, in respect
of the funds mobilized by them from abroad against issuance
of Certificates of Investment. The Authorised Dealers will
provide forward cover to the above institutions only in
respect of the funds brought by them from abroad and surrendered
to the State Bank of Pakistan. The exchange rates for the
forward sales to these institutions will be the same as
charged by the Authorised Dealers to their other customers
for forward sales of foreign currencies.
3.
Please bring the above to the notice of your constituents
