Regulatory Alerts2012-04-02 | TED.FEM.FPC.GEN.01.009.2012Re: Liberalization of Unconfirmed Letters of Credit
The Central Bank's Trade & Exchange Department has updated its policy on using WDAS funds to negotiate unconfirmed letters of credit (ULC). From the stated date, such funds can only be used for importing raw materials, plant and machinery. Funds for negotiating ULC for general merchandise imports will now come from the interbank market. This change supersedes an earlier circular, and non-compliance may result in suspension from the foreign exchange market.
09 46237802 TRADE & EXCHANGE DEPARTMENT Tel: Fax: E-mail address:ted@cenbank.org TED/FEM/FPC/GEN/01/009 April 2, 2012 TO: ALL AUTHORISED DEALERS AND THE GENERAL PUBLIC RE: LIBERALIZATION OF UNCONFIRMED LETTERS OF CREDIT Authorised Dealers are hereby informed that from the date of this circular, the restriction on the use of WDAS to negotiate Unconfirmed Letters of Credit (ULC) has been reviewed.
Consequently, WDAS funds can be used to negotiate ULC established for the importation of Raw Materials, Plant and Machinery only. For the avoidance of doubt, funds for the negotiation of ULC established for importation of general merchandise shall be from the Interbank market.
This circular supersedes the one with reference: TED/FEM/FPC/GEN/01/036 of November 24, 2010, Please note and ensure compliance as any breach will be sanctioned appropriately, including suspension from the foreign exchange market.
DE & EXCHANGE DEPARTMENT