Forex licences are currently limited to licensed commercial banks and money brokers.
rnrnFinancial Institutes like DFI
quote s are currently barred from carrying out trade financing activities due to the lack of a forex licence.
rnrnldblquote There is no reason why the commercial banks should be the only forex dealers. Licenses should be broad based to cover other financial institutes as well
dblquote , DFCC Bank CEO, Nihal Fonseka said addressing businessmen at today
quote s Financial Reforms Forum.
rnrnHe also pointed out the conflict of interest arisising from Central Bank, vested with twin responsibilities of monetary policy and banking supervision.
rnrnThe Central Bank should ideally focus on maintaining price stability and gradually hand over its banking supervision role to a separate authority, Fonseka said.
rnrnHe identified lquote one size fits all
quote type regulations as a cause for the low level of innovation and dynamism in the local financial markets.
rnrnldblquote If one financial