Central Bank relaxed restrictions on remitting foreign currencies
Feb 05, 2016 (LBO) – The Central Bank has relaxed restrictions on remitting and transacting foreign currencies with immediate effect.
With this new decision, foreign currencies can be remitted out of NRFC, RFC and RNNFC (Resident Non National Foreign Currency) accounts and FEEA (Foreign Exchange Earners’ Account) for any purpose and prior approval need not be obtained for such remittances.
Up to 10,000 US dollars or its equivalent can be withdrawn in cash from such accounts for any purpose.
Earlier foreign currency withdrawals were limited for activities like education or medical purposes and banks had to ensure that transactions were only for current account purposes.
Sri Lanka liberalizes withdrawals from forex accounts
ECONOMYNEXT - Sri Lanka has liberalized the payments out of foreign currency account held by residents and non-residents with withdrawals in currency notes also being permitted with immediate effect, the regulator has said.
In the past currency notes were allowed to be withdrawn for purposes such as foreign travel and air tickets had to be produced. But now balances could be withdrawn in foreign currency without a reason being sought by the regulator.
Bankers said currency notes may have to be imported for such payments. However remitting forex out through electronic means has also been eased which will discourage the need for demanding notes, bankers said.
Some bankers said the gap between kerb or black market and official markets for notes may narrow as a result.
Sri Lanka's black markets rates are slightly elevated at the moment due to currency pressure. But high import taxes on some goods also lead to wide margins.
Dealers said on one week Friday rupee forwards were quoted at 144.20/30 levels on stronger remittances and weaker import demand.
Feb 05, 2016 (LBO) – The Central Bank has relaxed restrictions on remitting and transacting foreign currencies with immediate effect.
With this new decision, foreign currencies can be remitted out of NRFC, RFC and RNNFC (Resident Non National Foreign Currency) accounts and FEEA (Foreign Exchange Earners’ Account) for any purpose and prior approval need not be obtained for such remittances.
Up to 10,000 US dollars or its equivalent can be withdrawn in cash from such accounts for any purpose.
Earlier foreign currency withdrawals were limited for activities like education or medical purposes and banks had to ensure that transactions were only for current account purposes.
Sri Lanka liberalizes withdrawals from forex accounts
ECONOMYNEXT - Sri Lanka has liberalized the payments out of foreign currency account held by residents and non-residents with withdrawals in currency notes also being permitted with immediate effect, the regulator has said.
In the past currency notes were allowed to be withdrawn for purposes such as foreign travel and air tickets had to be produced. But now balances could be withdrawn in foreign currency without a reason being sought by the regulator.
Bankers said currency notes may have to be imported for such payments. However remitting forex out through electronic means has also been eased which will discourage the need for demanding notes, bankers said.
Some bankers said the gap between kerb or black market and official markets for notes may narrow as a result.
Sri Lanka's black markets rates are slightly elevated at the moment due to currency pressure. But high import taxes on some goods also lead to wide margins.
Dealers said on one week Friday rupee forwards were quoted at 144.20/30 levels on stronger remittances and weaker import demand.
