Forex on your way home?

Thursday, 5 May 2011 00:26 - - {{hitsCtrl.values.hits}}

By Uditha Jayasinghe

The Central Bank has initiated discussions to allow super market chains to engage in the lucrative money exchange business as a means of expanding the reach of this facility.

Last year the money exchangers did US$ 138 million worth of business, but this was down from US$ 216 million in 2009. A top official told the Daily FT that this reduction was one of the reasons that spurred the Central Bank to consider alternative means of providing foreign exchange facilities.

Top supermarket chains Keells, Cargills, Arpico and Laugfs have already had discussions during the past two weeks with Central Bank officials in this regard. The plan is currently being finalised before being presented before the Monetary Board.

“The bulk of money exchangers in Sri Lanka are concentrated around Colombo and Negombo. Currently there are 83 outlets, but they have limited reach. Therefore, the idea of offering licences to supermarkets was considered since it would give several benefits to consumers. We will be presenting the plan before the Central Bank Monetary Board within two months,” the official said.

Normally money exchangers close shop by 6 p.m. but supermarkets are open till late, providing more convenience to the customer. Supermarkets are also open on weekends and public holidays as well as reaching every part of the country. These are the main reasons for the Central Bank to consider expanding the service through supermarkets.

“With tourism developing, there is a greater need to provide services around the country,” he explained, adding that it was also necessary for money exchangers to be more streamlined and protected.

Pointing out that some of the foreign currency exchanged at conventional money exchangers finds their way to the black market, the official stressed that a more structured and consumer-friendly process was necessary. However, the existing money exchangers will continue to provide services as well.