Circulars/Notifications  

 F.E. Circular Letter No. 07
September 12, 2002 

Cir. Letter No. 07 /EPP.16(326)NFCA-2002

Head/Principal Offices of
all Authorized Dealers
in Foreign Exchange,

Dear Sirs,

TRADE LOANS UNDER FE 25 OF 1998

In continuation of our circular letter No. 5/EPP.16(326)NFCA-2002 dated August 23, 2002, we would like to further clarify as under:-

i) Authorised Dealers are allowed to utilize the funds under FE 25, generated through the following sources, for lending for trade related activities i.e. imports and exports:

a) Interbank placements

b) Interbank SWAPs (Buy/Sell $)

ii) Foreign currency funds generated through SWAPs (Buy/Sell $) from the State Bank would also be eligible for financing of above trade-related activities.

2. It may further be noted that re-discounting of the export documents abroad in Foreign Currency is also permissible during normal course of business. Authorised Dealers are allowed to remit re-discounting charges according to para 18 Chapter XIV of FE Manual (8th Edition 2002).

3. Please advise your branches and other constituents accordingly.
Yours faithfully,
(SYED SAMAR HASNAIN)
Joint Director
 
Endt. No. 07-A /EPP.16(326)NFCA-2002 of date

Copy forwarded for information to:-

i) The Director, EPD, SBPBSC (Bank), Karachi.

ii) The Director, Accounts Department, SBP, Karachi.

iii) The Director, Statistics Department, SBP, Karachi.

iv) The Director, Banking Inspection Department, SBP, Karachi.

v) The Director, Banking Policy Department, SBP, Karachi.

vi) The Director, Banking Supervision Department, SBP, Karachi

vii) The Director, Exchange & Debt Management Department, SBP,
Karachi

Joint Director

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