Sri Lanka central bank probes forex dealers

Directory launched in the presence of Jagath Perera, CA Sri Lanka President, Manil Jayesinghe, CA Sri Lanka Vice President, Harsha Basnayake, Ernst & Young Asia Pacific Transaction Advisory Managing Partner, Aruni Rajakarier, Chairperson of the CA Sri Lanka Women Empowerment Committee, Anoji De Silva, Alternate Chair of the Women Empowerment Committee and Dulani Fernando, CA Sri Lanka CEO

Apr 25, 2012 (LBO) – The central bank will take action against dealers who are engaging speculative deals in forex markets without underlying transactions, Central Bank Governor Nivard Cabraal said. “We are now investigating into some speculative deals,” Cabraal said.

He said banks are not expected to buy dollars without underlying transactions to back them.

Sri Lanka’s rupee was quoted as low as 133.50/134.00 Wednesday as some exporters held back and importers covered positions, dealers said.

The rupee weakened as the Central Bank allowed the currency to trade more freely.

But a state bank offered dollars at 133.00 rupees and the dollar was later quoted at 132.80/133.25.