CHAPTER
XI
DEALINGS
IN FOREIGN CURRENCY NOTES AND COIN ETC
1.
Authorised
Dealers and Money Changers.
2.
Purchase
from the Public.
3.
Purchase
from other Authorised Dealers and Money Changers.
4.
Non-convertible
Currency Notes.
5.
Authorised Dealers' requirements of Foreign
Currency Notes.
6.
Sale
to Public.
7.
Sale
to other Authorised Dealers.
8.
Disposal
of Surplus Notes.
1.
Authorised Dealers and Money Changers.
(i)
Authorised Dealer’s licence to deal in foreign exchange
includes an authority to deal in foreign currency notes and coins
as well. This chapter sets out the regulations, which govern the
purchase and sale of foreign currency notes and coins.
(ii)
Besides Authorised Dealers, the State Bank has granted
Authorised Money Changer’s Licences to Pakistan nationals and
resident Pakistani firms/companies to purchase and sell foreign
currency notes and coins. They are required to follow the code
of conduct prescribed for them vide Chapter II.
2.
Purchase from the Public.
All
incoming passengers, whether Pakistani or foreign can bring with
them without any limit foreign currency notes, coins and other
instruments which should be freely purchased by the Authorised
Dealers against payment in Rupees. In all cases Authorised Dealers
should issue a certificate of encashment in the prescribed form
(Appendix V-10) and if so desired by the travellers, the purchase
should be endorsed on the traveller's passport. In cases where
the foreign currency offered for sale by a traveller had been
originally obtained from an Authorised Dealer, the repurchase
should be endorsed on the traveller'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, coins 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 centres 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 demonetisation, currency re-organization
etc., in foreign countries. Such information may also be passed
on by the Authorised Dealers to those Authorised Money Changers
who are their customers. Authorised Dealers should regulate the
sale of foreign currency notes etc., to travellers keeping in
view the restrictions 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 notes 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 coins 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 paragraph 44 of that chapter.
7.
Sale to other Authorised Dealers.
Authorised
Dealers may freely sell foreign currency notes and coins to other
Authorised Dealers.
8.
Disposal of Surplus Notes.
When
Authorised Dealers are unable to dispose of their holdings of
foreign currency notes by sale to the public or other Authorised
Dealers, they may dispatch such surpluses to their agents or correspondents
abroad for crediting their value to their foreign currency accounts.