The State Bank of Pakistan (SBP) has decided to increase the maximum cap on aggregate Foreign Exchange Exposure Limit (FEEL) of Authorised Dealers (ADs) by Rs 500 million to Rs 2,500 million with effect from May 16, 2011. The increase in maximum cap of ADs is being effected in accordance with the changed market conditions and trade volumes, the central bank said.
Based on the review of the annual audited accounts, the FEEL of each AD will be advised separately, says the SBP Circular (DMMD No 5) issued Thursday. At present the FEEL of ADs is being calculated at 20 percent of their paid-up capital (free of losses) with a maximum cap of PKR 2,000 million which has now been increased to PKR 2,500 million. Moreover, the SBP says it reserves the right to assign the FEEL of any AD below 20 percent of paid-up capital based on the trends observed in the utilisation of FEEL.