All
Authorised Dealers
in Foreign Exchange,
Dear
Sirs,
FORWARD
TRANSACTIONS WITH CUSTOMERS
In
partial modification of instructions issued vide sub
para (ii) of para 7 of F.E Circular No.8 of 1999 Authorised
Dealers are advised that they should not enter into forward
transactions with customers for a tenor of less than one
month. Further, one month forward transactions with customers
will be for fixed maturity, in case payment is made / received
within one month, spot selling / buying rate will be applied
and the relevant contract will be closed out at the maturity
date.
Furthermore,
Authorised Dealers are prohibited from buying and selling
Foreign exchange from / to other Authorised Dealers unless
such purchase / sale is backed by permissible transaction
with their customers. Accordingly paragraph
9, chapter V of Foreign Exchange Manual, as revised
vide para 6 of F.E Circular No.
8 of 1999 is amended with immediate effect to read as
under:
"
Authorised Dealers may freely buy and sell Foreign currencies
from and to other Authorised Dealers in Pakistan provided
such purchased / sales are backed by permissible transactions
with their customers. "