Head
Office / Principal Office of All
Authorised Dealers in Foreign Exchange,
Dear
Sirs,
Please
refers it the instructions issued vide F.E
Circulars No. 38
of July 21, 1998,
as clarified and amended from time to time, regarding the
news foreign exchange rate mechanism introduced with effect
from July 22, 1998.
2.
While the official exchange rates as notified vide F.E
Circular No. 43
of July 21, 1998
(viz SBP spot buying Rs 46.00 and selling Rs 46.23 per U.S.
Dollar) continue to remain fixed, the following amendments
are made in the existing instructions effective from December
21, 1998 :
-
The
official exchange rate will continue to be applied to
:-
-
import
of wheat,
-
import
of POL products indicated in our Circular Letter
No. 35/FEP.16(326)Q-Poly-98 of August 24, 1998.
-
swap
deposits.
-
foreign
currency accounts existing as of June 30, 1998,
and
-
encashment
of Dollar Bearer Certificates, Five Years Foreign
Currency Bearer Certificates, Three Years Foreign
Currency Bearer Certificates and pre-mature encashment
of Special U.S. Dollars Bonds.
-
All
other transactions, both receipt and payments, including
transaction in the Public Sector, will place at the
'Composite' rate of exchange representing the weighted
average of the 'Official' exchange rate and the 'Floating
Inter-bank' exchange rate in the ratio of 20:80
-
Exporters
will be permitted to retain eighty per cent of the net
export proceeds received by them in foreign exchange
in Special Exporter's Account for a period of seven
working days, for sale to an Authorised Dealer at the
Floating Inter-Bank rate. The remaining twenty per cent
will be surrendered by them at the official exchange
rate.
-
Authorised
Dealers will continue to surrender to the State Bank,
at the SBP official buying rate, the full amount of
foreign exchange receipt covered by 'official' exchange
rates as mentioned at items (C) and (d)
of sub-para (i) in accordance with
the existing arrangements. They will also surrender
twenty per cent of the receipt covered by the composite
rate of exchange. They will purchased from the State
Bank, at SBP official selling rate, the full amount
of foreign exchange sold by them at the official rate
(as mentioned in sub-para (i) above), and twenty
per cent of foreign exchange sold by them at the 'Composite'
rate. In the case of forward contracts subsisting on
the effective date of this circular, the retention,
surrender and purchase/sale requirement will remain
unchanged, and the forward commitments will be required
to be honored.
3.
The format prescribed for 'Request for sale/purchase and
delivery of U.S. Dollar' has been revised and a copy of
the revised format is enclosed. Only the net amount will
be required to be settled as at present.
4.
All other instructions on this subject remain unchanged.
The Floating Inter-bank rates will continue to be determined
freely in the inter-bank market by the inter-section of
supply and demand.
5.
Persons requiring foreign exchange for travel purpose will
continue to obtain their requirement entirely from the Authorised
Money Changers, as advised vide F.E
Circular No. 45 of
September 1, 1998. The Authorised Dealers will
not release any foreign exchange for this purpose.
6.
Please convey these instructions to all your branches authorised
to deal in foreign exchange and bring these changes to the
notice of tour clients.
REQUEST
FOR SALE / PURCHASE AND DELIVERY OF US DOLLAR