FE
Circular No. 08 of 2006 |
July 08, 2006 |
The
Chief Executives of
All Exchange Companies
Dear
Sirs / Madam,
Nostro
Accounts with Exchange Companies Abroad
and Sale of Foreign Exchange in the Interbank Market
In view of the difficulties at the initial stage in opening
of Nostro Accounts with the banks abroad, the Exchange Companies
were allowed to open Nostro Accounts with Exchange Companies
abroad for related purposes. It has now been decided that
all such Nostro Accounts with Exchange Companies abroad
will be closed latest by 25th July 2006. Accordingly, FCYs
on account of home remittances or against export of foreign
currencies (other than US $) should either be received in
Exchange Company’s Nostro Accounts with the Banks
abroad or in FCY A/Cs maintained with Banks in Pakistan.
Exchange Companies will be further required to report, on
transaction-to-transaction basis, with the relevant dates
of export of foreign currencies (other than US $) and date
of receipt of credit, the name of branch & the bank.
It
has also been decided that as from 10th of July, 2006
(inclusive), all Exchange Companies shall ensure that
a minimum of 10% of foreign currencies exported by them
and a minimum of 10% of foreign currencies received by
them on account of inward home remittances, in equivalent
US $, must invariably be sold in the interbank market
on an ongoing basis. A report as of last day of the month
must be submitted to this department by every Exchange
Company, giving aggregate FCY amounts mobilized under
the above two categories and amounts sold in the interbank
market alongwith the name of the counter parties &
relevant dates.
Failure to comply with the above instructions will be
dealt with strictly under related rules & regulations.
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Yours
faithfully,
Sd/-
(Azhar Kureshi)
Director
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