5. Foreign Exchange Banking in PK (Guide)

CHAPTER - V Foreign Remittances Foreign remittance can be defined as an act of transferring money from one country to an other. Bank issue remittances on behalf of the customers after receiving value of remittance, related charges and Govt taxes. Remittances payable within country are called “inland remittance. Remittances payable outside the country and received from foreign countries are called “foreign remittances. Foreign remittances are not only source of funds for the banks but also play a very significant role in enhancing foreign...

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4. Foreign Exchange Banking in PK (Guide)

CHAPTER - IV Exchange Position Cash flow position There is said to be a 'position' if circumstances are such that a change in a rate will create a profit or loss. If cash inflows and cash outflows are unequal or have mismatched value dates, there is a 'net cash flow position'.  Separate net cash flow positions apply for each value date.   Net cash flow position = cash Inflow - cash Outflow A positive net cash flow position reflects an excess of cash inflow, over cash outflow, on the relevant value date. The surplus...

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3. Foreign Exchange Banking in PK (Guide)

CHAPTER - III Forward Exchange Facilities According to the chapter IV of the SBP foreign exchange manual, Banks and DFIs can enter into forward purchase and sale of foreign currencies against genuine and firm transactions of approved nature. Forward cover can be provided even if letter of credit has been opened through an other bank or export documents have been handled by an other bank. In that case cover shall be provided on the basis of a certificate indicating that no cover has been provided by the concerned bank or DFI against...

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