All Authorised Dealers
in Foreign Exchange,

Dear Sirs,

FORWARD COVERS

Please refer to the instructions contained in paragraphs 2, 3 & 4, Chapter-IV of the Foreign Exchange Manual circulated vide F.E. Circular No. 33 dated the 28^th March, 1994 as amended from time to time, (re-print circulated vide circular letter No.Cir.49/FEG-Reg (12)-97 dated the 18^th November, 1997), in terms of which Authorized Dealers may purchase and sell foreign currencies forward in cover of trade transactions upto six months. It has been decided to permit Authorized Dealers to increase the term of forward cover for trade transaction upto 12 months. The forward buying and selling rates for periods exceeding six months may be quoted by Authorized Dealers for fixed and/or optional delivery.

2. Authorized Dealers are advised to bring this change to the notice of their constituents.

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