All
Authorized Dealers
In Foreign Exchange,
Dear
Sirs,
EXPORTS
- RATE OF EXCHANGE
It
has been decided that while the proceeds of exports will
be purchased by the Authorized Dealers at the rate of exchange
determined by them in terms of F.E. Circulars
Nos. 1 and 5 of 1998, the State Bank will pay a cash subsidy to the
extent of the difference between the Authorized Dealers'
buying rate and Rs. 46 per U.S. dollar (and this rate crossed
with New York's closing mid rate for the previous working
day in respect of other currencies as published by the Foreign
Exchange Rates (Committee) which will also be paid by the
Authorized Dealers to the exporters and reimbursement claimed
by them from the State Bank. This instruction will apply
to all the payments made by the Authorized Dealers in respect
of export proceeds (including 'Advance Payment) on or after
24th June, 1998. Payment will be made by the
Authorized Dealers and differential claimed in accordance
with the procedure explained in paragraph
'A' of F.E. Circular No. 25 of June 20, 1998. The same
principle will also apply to export proceeds received from
a non-resident rupee account of an overseas bank branch,
as stated in paragraph
'A' of F.E. Circular No. 25 of 1998.