Please refer to the instructions contained in para 2 of F.E. Circular No.15 of 1999, wherein Authorised Dealers were prohibited from buying and selling foreign exchange from/to other Authorised Dealers unless such purchase/sale is backed by permissible transaction with their customers.

2. With a view to further liberalize the foreign exchange market, it has been decided to withdraw the above restrictions with immediate effect. Accordingly, paragraph 9, Chapter V of Foreign Exchange Manual (7th Edition, 1992) is amended to read as under:-

“Inter-bank operations.

Authorised Dealers may freely buy and sell foreign currencies from and to other Authorised Dealers in Pakistan within the permissible exposure limit.”