The Central Bank (CB) has reminded commercial banks not to encourage the grey market for foreign exchange dealings.
In a memo to all CEOs of commercial banks as well as the Sri Lanka Banks’ Association from the Director of Bank Supervision and Director of International Operations, it has referred to the need for preventing foreign exchange transactions taking place outside the banking system following the CB Governor’s notice on 6 September requesting banks to execute dollar/rupee transactions at the range between Rs. 200 and Rs. 203.
The CB memo said that at recent meetings with senior officers of licensed banks, it has been brought to its attention that a separate market exists among exporters and importers outside the formal banking system to arrange their foreign exchange requirements, leading to an unhealthy development undermining the stability of the exchange rate and the smooth functioning of the domestic foreign exchange market.
FT
In a memo to all CEOs of commercial banks as well as the Sri Lanka Banks’ Association from the Director of Bank Supervision and Director of International Operations, it has referred to the need for preventing foreign exchange transactions taking place outside the banking system following the CB Governor’s notice on 6 September requesting banks to execute dollar/rupee transactions at the range between Rs. 200 and Rs. 203.
The CB memo said that at recent meetings with senior officers of licensed banks, it has been brought to its attention that a separate market exists among exporters and importers outside the formal banking system to arrange their foreign exchange requirements, leading to an unhealthy development undermining the stability of the exchange rate and the smooth functioning of the domestic foreign exchange market.
FT
