All
Authorized Dealers
In Foreign Exchange,
Dear
Sirs,
EXCHANGE
RISK COVERAGE FOR REPATRIABLE LOANS
Attention
of the Authorized Dealers is invited to F.E. Circular No.93
dated the 28th October, 1990 on the captioned
subject.
2. It has
been decided to raise the minimum rate of exchange
risk coverage fee on reportable loans from 7.50% per annum
to 10% per annum. The above instructions will come into
force with effect from the 25th January, 1994.
In other words, the revised instructions would apply to
the covers taken on or after the 25th January,
1994. The form for calculating the rate of exchange risk
coverage fee for repatriate loans as laid down in F.E. Circular
No.70 dated the 18th November, 1986 will, however,
remain unchanged.
3. As a consequence
of the above, the figure of "7.50% appearing in the
last line of para
17 - Chapter
IV of the Foreign Exchange Manual (7th Edition
1992) may be replaced by "10.0 %".
4. Please
bring the above to the notice of your constituents.
