March 20, 1952
CBP MEMORANDUM
TO : Authorized Agents
The directive to all authorized agents embodied in our letter dated November 16, 1951 requiring the maintenance of a ratio of 70% between the total of net foreign exchange assets, cash in vault, excess reserves, and securities other than those which have been utilized as part of the required reserves for deposit liabilities, and the total outstanding import letters of credit is hereby amended to include packing credit overdraft among these assets.
In determining the required ratio, there shall be excluded from the sum total of import letters of credit outstanding letters of authority issued in connection with United States Mutual Security Agency (formerly ECA) imports and letters of credit covering imports under the Philippines-Japan open account.
The packing credit overdraft thus authorized shall be limited to those advances in current account granted to bona fide exporters whose export letters of credit are already held by and actually in possession of the bank; provided, that the export credits are in U.S. dollars only, and that the packing credit overdraft does not...
