Circulars/Notifications - Financial Markets Strategy & Conduct Department  
 FSCD Circular No. 09 of 2009
June 10, 2009 

The Head/Principal Offices of
All Authorised Dealers
In Foreign Exchange

Dear Sirs/Madams,

Foreign Exchange Exposure Limit (FEEL)


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.

Yours sincerely,


(Muhammad Usman Baloch)
Junior Joint Director

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