SBP announces increase in FEEL to 25 percent of ADs' paid-up capital

KARACHI: The State Bank of Pakistan (SBP) has announced increase in the Foreign Exchange Exposure Limit (FEEL) assigned to the Authorized Dealers up to 25 percent of their paid-up capital (free of losses). Previously, aggregate FEEL of Authorized Dealers was set as 20 percent of their paid-up capital (free of losses) with a cap of Rs 3.500 billion.

Now, the SBP has decided that FEEL will be assigned to the authorized dealers up to 25 percent of their paid-up capital (free of losses), based on their share in FX market volumes, with maximum cap up to Rs 5.000 billion.

However, the SBP said that it reserves the right to assign reduced FEEL to any Authorized Dealer keeping in view its behavior in the FX market. As per revised criteria, the FEEL of each Authorized Dealer will be advised separately based on its paid-up-capital (free of losses) position as of annual audited accounts and FX market volumes. All other instructions will remain unchanged, the SBP said.

Copyright Business Recorder, 2020