Please refer to FSCD
Circular No. 06 dated March 26, 2007, in terms of which
aggregate Foreign Exchange Exposure Limit (FEEL) of Authorised
Dealers (ADs) was set as 15% of their Paid-up Capital
with a maximum cap of PKR 1,500 million.
To adjust the FEEL
of ADs according to the changed market conditions &
trade volumes, it has been decided that, effective from
June 15th, 2009, the FEEL of ADs would now be calculated
as 20% of their Paid-up Capital (free of losses) with
a maximum cap of PKR 2,000 million. However, SBP reserves
the right to assign the FEEL of any AD below 20% of Paid-up
Capital (free of losses), based on the trends observed
in the utilization of FEEL.
The FEEL of ADs would
now be reviewed annually on the basis of annual audited
accounts each year and any changes will be advised to
each AD individually through separate letter.
In the case of banks
incorporated in Pakistan the limit would cover all the
branches including overseas branches if any, as already
advised vide FSCD Circular No 06 referenced above. The
assigned FEEL should be meticulously adhered to and any
breaches would attract penal actions, as deemed appropriate.
The guidelines for
calculating the aggregate foreign exchange exposure as
conveyed vide Para 4 of FE Circular No. 12 dated May 29,
1999 would remain unchanged.