UPDATED F.E. CIRCULAR
Date 15th November, 1995 |
F.E Circular No.46 |
All Authorized Dealers
In Foreign Exchange.
Dear sirs,
AISAN CLEARING UNION
Please refer to F.E. Circulars No.25
dated the 27th October, 1975 and No.47 dated the 22nd September,
1980 on the above subject.
2. The following changes have been made in
the Agreement establishing the Asian Clearing Union and the (Procedure) Rules:-
The value of Asian Monetary Unit (AMU)
which was hitherto equivalent to International Monetary Funds (IMF) Special Drawing
Right (SDR) will effective from 1st January, 1996 be equal to U.S. Dollar and
it will be denominated as "ACU Dollar".
The banks of the member countries
presently maintain Nostro accounts in the currency of the country where the account is
maintained. Under the new mechanism these accounts will be maintained in "ACU
Dollar".
When an Authorized Dealer needs to fund
its ACU Dollar Nostro account with its correspondent bank in another participating
country, it will surrender equivalent amount of U.S. Dollar to State Bank if Pakistan for
remittance through ACU mechanism. State Bank of Pakistan will advise the Central Bank in
the country concerned to make available the required U.S. Dollar amount to the concerned
bank in that country. State Bank of Pakistan will also advise the General Manager
ACU to credit the account of the Central Bank of that country by debit to its (SBPs)
account. The Authorized Dealers also have the option to get their rupee accounts with
State Bank of Pakistan debited with equivalent of U.S. Dollar amount desired to be
remitted at the State Banks selling rate instead of surrendering the U.S. Dollar
amount.
When an Authorized Dealer desires to
repatriate funds from its ACU Dollar account with its correspondent bank in another
country (correspondent bank), it will request that bank to effect the remittance through
the ACU me mechanism. The correspondent bank will surrender the requisite amount of U.S.
Dollar to its Central Bank for remittance. The Central Bank receiving the amount will
advise State Bank of Pakistan to make available the amount in U.S. Dollar to the concerned
bank. The Central Bank receiving the amount will also advise the General Manager
ACU to credit State Bank of Pakistans account by debit to its account. State Bank of
Pakistan in turn will provide the US Dollar amount to the bank concerned in Pakistan. The
State Bank may, at its option, make the payment in Pak rupee at its buying rate.
3. Authorized Dealers are hereby authorized to open ACU
Dollar accounts with their correspondents in the ACU member countries. Only one account
will be opened in each Country. These accounts should be opened before 1st
January, 1996.
4. The balances in the Nostro accounts presently
maintained by the Authorized Dealers with their correspondents in ACU member countries in
the currency of the respective countries should be settled by the 31st
December, 1995 and the relative accounts closed.
5. The limits for maintaining Nostro balances in ACU
Dollar for the banks maintaining accounts under ACU arrangement are being fixed and the
concerned bank(s) will be apprised of it separately. Authorized Dealers not maintaining
accounts abroad under ACU Arrangement may apply to the Deputy Director of (General),
Foreign Exchange Department, State Bank of Pakistan, Central Directorate, Karachi for
getting the limits fixed, if they so desire.
6. The new arrangement will come into force with effect
form 1st January, 1996 and the transactions will be routed through ACU Dollar
account.
7. Effective 1st January, 1996, the letters of
credit opened before commencement of the new mechanism in currencies of the ACU member
countries will also be settled in ACU Dollar. The rates for conversion of the amounts of
these letters of credit from the L/C currency into ACU Dollar shall be based on the parity
between SDR and the relevant currency and the parity between SDR and U.S. Dollar as
announced by IMF on the date two business day prior to the payment date.
8. Please bring the above to the notice of constituents.
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