Circulars/Notifications - Exchange Policy Department  
FE Circular No. 04 of 2012

September 04, 2012

The Head/Principal Offices of all
Authorized Dealers in Foreign Exchange

Dear Sirs/Madam,

Foreign Currency Accounts and Trade Loans under FE-25 Scheme

Attention of Authorized Dealers is invited to Para-6 of Chapter VI of F.E. Manual (Eighth Edition-2002) and other instructions issued on the subject from time to time.

In this regard, it has been decided that Authorized Dealers may open foreign currency accounts and extend trade loans under FE-25 Scheme in US Dollar (USD), Pound Sterling (GBP), Euro (EUR), Japanese Yen (JPY), Canadian Dollar (CAD), UAE Dirham (AED), Saudi Riyal (SAR), Chinese Yuan (CNY), Swiss Franc (CHF) and Turkish Lira (TRY).

Further to EPD Circular Letter No. 07/EPP.16 (326) NFCA-2002 dated September 12, 2002, it is advised that the interbank placements and interbank SWAPs or any other source of foreign currency liquidity that is permitted under SBP Rules / Regulations can be used to extend trade loans in the above foreign currencies. However, currency of the trade loan should be the same as that of the underlying LC/ Firm Trade Contract.

The above instructions are applicable with immediate effect. All other instructions on the subject shall remain unchanged..

Authorized Dealers are advised to bring the above to the notice of all their constituents and ensure meticulous compliance.


Yours faithfully,


(Mohammed Mansoor Ali)

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