All Exchange Companies of ‘B’ Category
Dear Sirs,
Overnight
Exposure
In
order to facilitate Exchange Companies of ‘B’
Category, established under F.E. Circular No. 06 dated June
07, 2004, it has been decided to allow such Exchange Companies
to carry a foreign currency exposure at the close of business
each day at a level not higher than 25% of the capital base.
The method to determine exposure shall be that the “Pak
Rupee equivalent of all the Foreign Currencies held by the
Exchange Company including at all of their branches, shall
not exceed 25% of the capital base at the close of business
each day”. Therefore, an Exchange Company of ‘B’
Category having a capital base of Rs. 20.0(M), may carry
over to the next day total Foreign Currencies holding (Exposure)
equivalent to Pak Rupees not exceeding 25% of its capital
base i.e. Rs. 5.0 (M) at the close of business each day.
All
Exchange Companies of ‘B’ Category are advised
to observe the above instructions meticulously. Compliance
to the above instructions shall be evaluated by SBP as and
when deemed appropriate and deviations if any shall attract
penal action.