Jan 26, 2021

Banks urged to refrain from entering into forward contracts of forex

Sri Lanka’s Central Bank (CBSL) has requested licensed commercial banks to refrain from entering into forward contracts of foreign exchange for a period of three months with immediate effect.

The Monetary Board of the CBSL has issued a Banking Act Direction in this regard yesterday (25). 

The new banking act direction has been issued in view of the need to avoid excess volatility in the foreign exchange market and the impact on banks’ risk management.

CBSL

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