The Central Bank Governor Dr. Nandalal Weerasinghe yesterday said that it will give daily guidance to determine the inter-bank exchange rate to woo greater transactions by exporters and importers via official channels as opposed to resorting to the grey market.
He said the move was follow up to a suggestion from the banking sector.
“This will help minimise volatility in the exchange rate and forex market and ensure a realistic rate for all stakeholders including importers and exporters,” the Governor told the media. The guidance will be based on the weighted average exchange rate of the previous day +/- a specified %.
He reiterated that the banning of Open Account facility except exporters and indirect exporters as well as modified conditions for DP and DA terms for imports will curb the parallel unofficial market by minimising the premium and boost dollar liquidity.
Operating instructions to be issued this week to banks to minimise charges on fees, margins, and commissions on exchange transactions.