Circulars/Notifications - Exchange Policy Department  
 F.E. Circular No. 83
December 30, 1993 

All Authorised Dealers
in Foreign Exchange,

Dear Sirs,

EXPORTS – APPLICATION OF EXCHANGE RATES

Under the existing rules Authorized Dealers are required to convert inward remittances on account of exports at the T.T. Clean buying rate where documents are sent on collection basis or where advance payment is received. In cases where the documents are drawn under a letter of credit, conversion is required to be made at the OD buying rate. The rationale is that under letters of credit, negotiating banks are required to make immediate payment upon negotiation of documents while the payments from the opening / reimbursing banks are received subsequently. The exporters have, however, complained that the Authorized Dealers are making payment even in the case of documents presented against the letters of credit after receipt of funds from the opening/reimbursing banks at the OD buying rate instead of making up-front payments. It is, therefore, advised that in cases where documents presented under letters of credit are not negotiated for any valid reason but payment is made to the exporter after receipt of funds from the opening / reimbursing bank, conversion will invariably be made at the T.T. clean buying rate instead of OD buying rate. The Authorized Dealers will, however, be free to recover from the customers their service charges and postage’s.

       
Home
About SBP
Publications
Economic Data
Press Releases
Circulars/Notifications
Laws & Regulations
Monetary Policy
Help Desk
SBP Videos
Feedback
Contact us
What's New?
Speeches
Online Tenders
Web Links

Educational Resources
Regulatory Returns
Library
Rupey ko Pehchano
Events
Zahid Husain Memorial Lecture
Careers
Sitemap
 
Best view Screen Resolution : 1024 * 768
Copyright © 2016. All Rights Reserved.