KARACHI (October 12 2004): The State Bank on Monday decided to allow 'B' category exchange companies to carry over foreign currency exposure at the close of business each day at a level not higher than 25 percent of the capital base.
The State Bank issued a circular which says that this decision has been taken to facilitate exchange companies of 'B' category.
The method to determine exposure will be that the “Pak Rupee equivalent of all the foreign currencies held by the exchange company including at all of their branches, will not exceed 25 percent of the capital base at the close of business each day,” said the circular.
“An exchange company of 'B' category having a capital base of Rs 20 million may carry over to the next day total foreign currencies holding (exposure) equivalent to Pak Rupees not exceeding 25 percent of that capital base ie Rs 5 million, at the close of business each day,” said the circular.
All exchange companies of 'B' category have been advised by the State Bank to observe the above instructions meticulously. Companies to the above instructions will be evaluated by SBP as and when deemed appropriate and deviations if any will attract penal action, said the circular.