Regulatory Alerts2025-08-01 | DMMD Circular No. 07Foreign Exchange Exposure Limit (FEEL)
The Domestic Market and Monetary Management Department has fixed the Foreign Exchange Exposure Limit for Authorized Dealers at 7.5 percent of their Tier-1 capital, as disclosed in their latest annual audited financial statements. Each dealer will receive an individually advised limit based on this capital position, streamlining foreign exchange operations amid shifting market conditions. The revised limits take effect on August 4, 2025, while all other existing regulatory instructions remain unchanged.
Circulars/Notifications -
Domestic Market & Monetary Management Department
DMMD Circular No. 07 of 2025
Aug 01, 2025
The Presidents/ Chief Executive Officers of All Authorized Dealers in Foreign Exchange
Dear Sirs/Madams,
Foreign Exchange Exposure Limit (FEEL)
Please refer to DMMD Circular No. 16 dated July 22, 2020.
Given the changes in market conditions and trade volumes, and to facilitate Authorized Dealers (ADs) in their foreign exchange operations, it has been decided that FEEL shall be assigned to ADs equal to 7.5% of their Tier-1 Capital as disclosed in latest annual audited financial statements.
As per the above criteria, the FEEL of each Authorized Dealer will be advised separately based on its Tier-1 Capital position, as per its latest annual audited financial statements.
The revised limits would be effective from August 4, 2025. All other instructions on the subject shall remain unchanged.
Yours truly,
Sd/-
(Dr. Mahmood ul Hasan Khan) Director
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