Please
refer to FE Circular No. 12 dated May 29, 1999, in terms
of which aggregate Foreign Exchange Exposure Limit of
scheduled banks was set as 10% of their Paid-up Capital,
under which they were asked to conduct their foreign exchange
operations.
2.
To further enhance the capacity of Authorized Dealers
in order to manage increased volume of FX Market and to
match future demand in the wake of growth in trade volumes,
it has been decided to revise the Foreign Exchange Exposure
Limit from April 02, 2007. Accordingly, new aggregate
Foreign Exchange Exposure Limit of scheduled banks would
now be calculated as 15% of their Paid-up Capital, with
a maximum cap of PKR 1,500 million. The assigned capital
required to be maintained by branches of foreign banks
in Pakistan under section 13 (3) of Banking Companies
Ordinance 1962 shall be deemed paid up capital for the
purpose of this circular. In the case of banks incorporated
in Pakistan the limit would cover all the branches including
overseas branches if any.
3. The guidelines for calculating the exposure limit as
conveyed in Para 4 of the aforesaid circular would remain
unchanged.
4. In case of increase in paid-up capital of a bank, it
may apply for the enhancement of its exposure limit to
the State Bank of Pakistan.
5.
New exposure limits would be advised to each bank individually
through separate letters.
6. Please acknowledge receipt.