SBP increases FEEL to 25% of Authorized Dealers’ Paid-up Capital

July 24, 2020 (MLN): The State Bank of Pakistan has announced an increase in the Foreign Exchange Exposure Limit (FEEL) assigned to the Authorized Dealers (ADs) up to 25% of their Paid-up Capital (free of losses), based on their share in FX market volumes, with maximum cap up to PKR 5,000 million.

Previously, aggregate FEEL of ADs was set as 20% of their Paid-up Capital (free of losses) with a cap of Rs 3.500 billion.

However, in a circular, SBP said it reserves the right to assign reduced FEEL to any AD keeping in view its behavior in the FX market.

As per the above 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 on the subject shall remain unchanged, SBP stated.

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