Forex dealers allowed to sell dollars to SBP – Banking Services Corporation

KARACHI (June 15 2005): The State Bank of Pakistan has allowed authorised dealers (ADs) to sell their surplus cash US dollars to the respective field offices of the central bank – Banking Services Corporation.

In a notification on Tuesday the SBP said that the ADs should refer to para 8 of the Chapter XI of the Foreign Exchange Manual (8th edition, 2002) in terms of which ADs are allowed to dispatch their surplus of foreign currency (FCY) notes to their agents or correspondents abroad for crediting the value to their FCY Nostro Accounts.

The scope of the procedure allowed, of disposal of surplus Cash Foreign Currencies, by way of export by the ADs is being widened and it has been decided to allow the ADs to sell their surplus cash US dollars to the respective field offices of SBP – Banking Services Corporation – as per the following procedure:

1) ADs having surplus cash US dollars will approach the designated field officer of SBP – Banking Services Corporation in their respective areas for depositing the same on account of SBP. Ten field offices of SBP-BSC have been designated for this purpose in Karachi, Lahore, Islamabad, Rawalpindi, Peshawar, Faisalabad, Gujranwala, Sialkot, Multan and Quetta.

2) Packets of US dollars currency notes (100 pieces) only in the denomination of US $50 and US$100 will be acceptable. Minimum amount acceptable for deposit would be US $100,000.

3) The packets will be opened and notes will be counted by the staff of the field chief officer of SBP- Banking Services Corporation in the presence of the representative of the concerned AD.

4) Counted currency notes will be repacked and sealed under the joint signature of representatives of the concerned AD and official from the SBP – Banking Services Corporation.

5) The AD will remain responsible for any forged/counterfeit notes, if later found in the currency deposited.

6) SBP will provide credit of the counter value in the Nostro Account of the AD in the same value date, on confirmation of balance from SBP – Banking Services Corporation field offices.

7) ADs are further advised to report henceforth, as of the 15th and 30th/31st of each month, currency-wise export of FCYs by them on an aggregate basis. Such reports, covering the fortnightly period, are required to be submitted by each bank to exchange policy department, SBP, by 19th and 4th of each month for the proceeding fortnight.

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