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ECONOMYNEXT – Sri Lanka’s central bank said it had raided at least four authorized money changers for giving rates higher than a mandated pegged rate.
The central bank has set a 200 to the US dollar official soft-peg but due to partial convertibility offered, its credibility has declined and parallel exchange rates have sprung up.
The central bank said two money changers in Wellawatte and two in Wennappuwa had been subject to “spot examinations”.
The rate offered in parallel markets have been around 240 to the US dollar
“In the event the errant Authorized Money Changers fail to rectify the issues communicated through the Notices, the Central Bank will be compelled to suspend and to revoke the permits issued to such Authorized Money Changers,” the central bank said in a statement.
“The general public is also informed that Authorized Money Changers have no authority to transact foreign exchange at rates higher than those offered by the banks to such Money Changers.”
The fulls statement is reproduced below:
Communications Department
09.12.2021
Central Bank initiates regulatory actions against errant Money Changers
In response to several complaints that certain Authorized Money Changers are engaged in activities which are not in compliance with the Directions issued under the provisions of the Foreign Exchange Act No. 12 of 2017 (FEA), the Central Bank is conducting a series of spot examinations at the places of Authorized Money Changers, thereby strengthening the monitoring and supervision of the Authorized Money Changers.
In the spot examinations conducted during the months of November and December 2021, it was revealed that the following Authorized Money Changers have not complied with the Directions issued to them under the provisions of FEA. Accordingly, after the Minister of Finance being informed, Notices have been issued to them to comply with the relevant Directions, within a specified time period.
i. New Natasha (Pvt) Ltd at No. 12, Super Market Complex, Wennappuwa
ii. George Michael Holdings (Pvt) Ltd at No. 157, Chilaw Road, Wennappuwa
iii. Royal Money Exchange (Pvt) Ltd at No. 55, Galle Road, Colombo 06
iv. Prasanna Money Exchange (Pvt) Ltd at No. 57, Galle Road, Colombo 06
In the event the errant Authorized Money Changers fail to rectify the issues communicated through the Notices, the Central Bank will be compelled to suspend and to revoke the permits issued to such Authorized Money Changers.
The general public is also informed that Authorized Money Changers have no authority to transact foreign exchange at rates higher than those offered by the banks to such Money Changers.
https://economynext.com/sri-lanka-c...s-for-offering-parallel-exchange-rates-88721/
ECONOMYNEXT – Sri Lanka’s central bank said it had raided at least four authorized money changers for giving rates higher than a mandated pegged rate.
The central bank has set a 200 to the US dollar official soft-peg but due to partial convertibility offered, its credibility has declined and parallel exchange rates have sprung up.
The central bank said two money changers in Wellawatte and two in Wennappuwa had been subject to “spot examinations”.
The rate offered in parallel markets have been around 240 to the US dollar
“In the event the errant Authorized Money Changers fail to rectify the issues communicated through the Notices, the Central Bank will be compelled to suspend and to revoke the permits issued to such Authorized Money Changers,” the central bank said in a statement.
“The general public is also informed that Authorized Money Changers have no authority to transact foreign exchange at rates higher than those offered by the banks to such Money Changers.”
The fulls statement is reproduced below:
Communications Department
09.12.2021
Central Bank initiates regulatory actions against errant Money Changers
In response to several complaints that certain Authorized Money Changers are engaged in activities which are not in compliance with the Directions issued under the provisions of the Foreign Exchange Act No. 12 of 2017 (FEA), the Central Bank is conducting a series of spot examinations at the places of Authorized Money Changers, thereby strengthening the monitoring and supervision of the Authorized Money Changers.
In the spot examinations conducted during the months of November and December 2021, it was revealed that the following Authorized Money Changers have not complied with the Directions issued to them under the provisions of FEA. Accordingly, after the Minister of Finance being informed, Notices have been issued to them to comply with the relevant Directions, within a specified time period.
i. New Natasha (Pvt) Ltd at No. 12, Super Market Complex, Wennappuwa
ii. George Michael Holdings (Pvt) Ltd at No. 157, Chilaw Road, Wennappuwa
iii. Royal Money Exchange (Pvt) Ltd at No. 55, Galle Road, Colombo 06
iv. Prasanna Money Exchange (Pvt) Ltd at No. 57, Galle Road, Colombo 06
In the event the errant Authorized Money Changers fail to rectify the issues communicated through the Notices, the Central Bank will be compelled to suspend and to revoke the permits issued to such Authorized Money Changers.
The general public is also informed that Authorized Money Changers have no authority to transact foreign exchange at rates higher than those offered by the banks to such Money Changers.
https://economynext.com/sri-lanka-c...s-for-offering-parallel-exchange-rates-88721/
