KARACHI (July 06 2003) : The State Bank of Pakistan has significantly cut the forward cover fee on foreign currency deposits ranging from 4 percent to 8.50 percent, effective from July 5, 2003.
The State Bank of Pakistan issued Circular letter No 13 on Saturday which said that with a view to facilitate the banks in the present declining interest rate scenario, it has been decided to lower the forward cover fee on foreign currency deposits eligible to obtain exchange risk coverage from the State Bank.
Accordingly, the revised fee for forward cover on these deposits, with effect from July 5, 2003, would be for US dollars 4 percent per annum, pound sterling 1.50 percent per annum, euro 3.00 percent and Japanese yen 5 percent.
As European currencies have merged into euro, the 3.00 percent rate is new for the current year.
The old rates were: for the US dollars at 8 percent per annum, pound sterling 8.15 percent, and Japanese yen 13.50 percent per annum.