Rate of Remuneration on Special Cash Reserve Account reduced to 1.08%: SBP

The State Bank of Pakistan, on Tuesday, modified the rate of remuneration on Special Cash Reserve Account maintained by all banks and non-bank financial institutions (NBFI) with the State Bank with respect to their foreign exchange deposits.

The rate for August 2018 stands at 1.08%, while the rate for the previous month was 1.09%.

All banks and NBFIs are required to maintain cash reserves in US$ equivalent to not less than 25% of their total foreign exchange deposits (raised under FE Circular 25 of 1998). The reserves are kept in two separate accounts, namely a 5% Cash Reserve Account (US$) and a 20% Special Cash Reserve Account (US$).

Of these two accounts, only the 20% Special Cash Reserve Account is remunerated by the State Bank on daily product basis on rates notified by the State Bank’s Exchange and Debt Management Department at the end of each month, which are to be effective for the following month.