What is foreign exchange currency account and discuss its main features

FOREIGN CURRENCY ACCOUNT :-
The state bank has introduced various reforms to increase the foreign exchange reserves. The Government has provided various types of incentives to attract the foreign exchange reserves. People also showed a very good response but unluckily govt. freeze the foreign currency accounts at time of bomb explosion. It discourage the foreign currency account holders. The remittances have been reduced and govt. realized the mistake. Now no any foreign currency account holder will be deprived of his right to hold and operate the account.

 
MAIN FEATURES OF FOREIGN EXCHANGE CURRENCY ACCOUNT :-

Following are the important features of foreign currency accounts :

1. These accounts are exempted from wealth that for six years.

2. These are exempted from income tax and Zakat.

3. The Government or State bank will not enquire about the source of fund of these accounts.

4. Foreign currency deposit can be accepted in saving accounts and interms.

5. State bank fixes the interest rate on foreign currency saving deposits and these  are to be paid monthly.

6. Foreign currency term deposits rate is also fixed by State Bank and paid on maturity.

7. Residents, non residents firms or company can open account in any foreign currency but to keep the operation smooth U.S. Dollar, Pound and Deutschmark  is also accepted.

8. These accounts can be opened only in the authorized branches of the commercial banks.

9. Foreign currency savings accounts opened with 1000 US Dollar or 1500 DM or 2500 Pound.

10. Foreign currency terms deposits can be opened and maintained with minimum 5000 US Dollar on 7500 DM or 2500 Pound.

11. These accounts will enjoy the protection under the reforms act 1992.

12. Under the new rules it has been also declared that these deposits are not required to be surrendered to State Bank.

13. It is also the discretionary power of the account holder to with draw the money in foreign currency.