In Foreign Exchange,
to F.E. Circular No. 33 dated the 28th
March, 1994 read with F.E. Circular
No. 46 dated the 26th May, 1994 on the above
2. It has
since been decided that with effect from 30th
June, 1994 State Bank of Pakistan will not provide forward
cover to the Authorized Dealers against forward covers provided
by them to their customers on account of import, export
and reportable loans etc.
Dealers may at their discretion provide covers to their
customers for imports / exports and reportable loans provided
their 'open position' permits them to do so, as the Authorized
Dealers should maintain square or near square exchange position.
The terms and conditions for booking of forward covers by
the Authorized Dealers will be the same as embodied in Chapter
IV of the Foreign Exchange Manual circulated vide F.E.
Circular No. 33 dated the 28th March, 1994
read with F.E. Circular No. 46 dated the
26th May, 1994. The existing para 25 of Chapter
IV of the Foreign Exchange Manual (7th Edition,
1992) may be renumbered as 16.
4. The premium
/ discount at which forward cover is made available to the
customers may be determined by the individual Authorized
Dealer. However, State Bank of Pakistan will have no objection
in case the Authorized Dealers collectively assign the job
of determining the premium / discount rates on forward covers
and publication of the forward rates to the Foreign Exchange
5. The forward
cover contracts booked by the Authorized Dealers with State
Bank of Pakistan upto the 29th June, 1994 can
be taken up / closed out during / on their respective maturates.
Bank of Pakistan will, however, continue to undertake spot
purchase / sale of U.S. Dollar from / to the Authorized
Dealers, and will continue to announce the rates for spot
transactions in U.S. Dollar by the State Bank and the Authorized
7. The existing
arrangement of U.S. Dollar / Pound Sterling
/ J.Yen / D.M. swaps and provision of forward covers by
State Bank of Pakistan on payment of the prescribed fee
by the Authorized Dealers under the Foreign Currency Accounts
Scheme will also continue.
8. It is
clarified that those persons who in accordance with the
existing regulations are under obligation to surrender foreign
exchange to authorized dealers, shall continue to be under