Karachi September 3, 2021: State Bank Of Pakistan has notified that the rate of remuneration for the month of September 2021 on Special Cash Reserve Account (US$) maintained with the State Bank of Pakistan will be 0.00%.
In order to further liberalize foreign exchange regime it has been decided to allow banks / NBFIs to freely utilize Foreign Currency Deposits mobilized under F.E. 25 for lending / investment /placement in Pakistan and /or abroad with effect from 2nd April 2001. Such deposits if maintained abroad will not count towards banks’ Nostro Limits. As a sequel to this, restrictions imposed by our Exchange Policy Department vide their FE circular No 13 of 1999 stand withdrawn to this extent.
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Accordingly the State Bank, has further decided that effective 2nd April 2001, every bank / NBFI shall be required to maintain cash reserves in US$ equivalent to not less than 25% of their total FE 25 deposits on daily basis with State Bank in the following manner: -
a) 5% Cash Reserve Account (US $)
b) 20% Special Cash Reserve Account (US $)
The reserves shall be kept in two separate accounts opened and maintained at the concerned office of the State Bank. While the cash reserve account will be non-remunerative, special cash reserve account will be remunerated by State Bank on daily product basis on rates notified by our Exchange & Debt Management Department at the end of each month. The rates so announced shall be effective for the following month. The banks / NBFIs may approach our Accounts Department for opening of the said accounts.
For the purpose of determining of reserve requirements, all deposits mobilized under FE 25 in foreign currencies other than US$, will be converted in US$ at the closing rates of exchange prevailing on the first day of each month of the respective banks / NBFIs. For any subsequent deposits, the prevailing exchange rates on the date of such deposits will apply.