1. Authorised Dealers and Money Changers.

Authorised Dealer’s licence to deal in foreign exchange includes an authority to deal in foreign currency notes and coin as well. Besides Authorised Dealers, the State Bank has granted Authorised Money Changer’s Licences to the Pakistan nationals and resident Pakistani firms/companies to purchase foreign currency notes/coin and foreign currency travellers cheques and to sell foreign currency notes and coin only. This chapter sets out the regulations which govern the purchase and sale of foreign currency notes and coin.

2. Purchase from the Public.

All incoming passengers, whether Pakistani or foreign can bring with them without any limit foreign currency notes, coin and other instruments should be freely purchased by the Authorised Dealers and Authorised Money Changers against payment in Rupee. In all cases Authorises Dealers should issue a certificate of encashment in the prescribed form (Appendix V-12) and if so desired by the travellers, the purchase should be endorsed on the traveler's passport. In cases where the foreign currency offered for sale by a traveler had been originally obtained from an Authorised Dealers, the repurchase should be endorsed on the traveler's passport in the case of Pakistan nationals only.

3. Purchase from other Authorised Dealers and Money Changers.

Authorised Dealers may also purchase foreign currency notes, coin and other instruments freely from other Authorised Dealers and Money Changers.

4. Non-convertible Currency Notes.

Many countries have restrictions on import of their own currency notes and do not also allow their repatriation through banking system. Surplus collection of such foreign currency notes can be disposed of in the international centers at market rates. Authorised Dealers should arrange with their overseas branches or correspondents to keep them fully informed of such restrictions on import and repatriation as also about demonestisation, currency re-organisation etc., in foreign countries. Such information may also be passed on by the Authorised Dealers to the Authorised Money Changers who are their customers. Authorised Dealers should regulate the sale of foreign currency notes etc., to travellers keeping in view the restriction of the respective countries so that they are not put to any loss or inconvenience on arrival in the foreign country concerned.

5. Authorised Dealers' Requirements of Foreign Currency Notes.

Authorised Dealers may replenish their stocks of foreign currency note for meeting the requirements of their customers either by purchasing them from other Authorised Dealers or by importing them from their overseas branches and correspondents.

6. Sale to Public.

Authorised Dealers may sell foreign currency notes and coin to persons proceeding abroad within the amount of foreign exchange sanctioned by the State Bank or released by the Authorised Dealers under the authority delegated to them in Chapter XVII subject to compliance of the provision of para 43 of that Chapter.

7. Sale to other Authorised Dealers.

Authorised Dealers may sell freely foreign exchange notes and coin to other Authorised Dealers.

8. Disposal of Surplus Notes.