Sri Lanka lifts ban on forex transactions; allows banks to provide forward sale

AgenciesUpdated: Wednesday, March 23, 2022, 05:00 PM IST
article-image
Forward sale and purchase of foreign exchange are contractual agreements between two parties to exchange a pair of currencies at a specific time in the future./ Representative image | Photo credit: IANS

The Sri Lankan central bank has lifted a ban on foreign exchange transactions and allowed banks to provide forward sale and purchase of foreign exchange facilities to importers.

Forward sale and purchase of foreign exchange are contractual agreements between two parties to exchange a pair of currencies at a specific time in the future, Xinhua news agency reported.

This new direction is expected to play a role in ending shortages of goods in the country.

On April 25, 2021, the central bank prevented commercial banks from selling dollars to customers for future transactions, causing significant issues for importers who found it difficult to order goods from abroad.

This move comes in the wake of a decision by the central bank to allow the Sri Lankan rupee to depreciate earlier this month.

(With inputs from IANS)

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Mumbai: CBI, ED appear unhappy with each other’s manner of work, says Court

Mumbai: CBI, ED appear unhappy with each other’s manner of work, says Court

Daily Horoscope for Saturday, July 2, 2022, for all zodiac signs by astrologer Vinayak Vishwas...

Daily Horoscope for Saturday, July 2, 2022, for all zodiac signs by astrologer Vinayak Vishwas...

Nupur Sharma and ‘her loose tongue has set entire country on fire’, should apologise to nation:...

Nupur Sharma and ‘her loose tongue has set entire country on fire’, should apologise to nation:...

Mumbai: Minor sexual abuse survivor can terminate pregnancy, rules Bombay HC

Mumbai: Minor sexual abuse survivor can terminate pregnancy, rules Bombay HC

Metro car shed in Aarey: Face-off between Thackeray-led Shiv Sena & Eknath Shinde govt ahead of BMC...

Metro car shed in Aarey: Face-off between Thackeray-led Shiv Sena & Eknath Shinde govt ahead of BMC...