Amãna Bank facilitates bilateral trade in Indian rupees

Tuesday, 12 September 2023 00:00 - - {{hitsCtrl.values.hits}}

Towards a more seamless and efficient international trade experience, Amãna Bank has announced the introduction of a trade channel that allows businesses to transact directly in Indian rupees (INR). In a significant development approved by the Central Bank of Sri Lanka, the Indian rupee (INR) has been accepted as a designated foreign currency, signalling a new era of trade within the SAARC region.

With this introduction, customers can now engage in trade transactions directly using INR, eliminating cross-currency FOREX losses while also preserving the country’s scarce dollar reserves. By leveraging this new channel, the Bank aims to facilitate customers in carrying out exports and imports with enhanced efficiency and convenience including LCs and advance payments.

Commenting on this Amãna Bank’s Chief Operating Officer Imtiaz Iqbal said: “India is one of the key trade channels of our business customers for both imports and exports. The launch of this direct trade channel for transactions in Indian rupees marks a significant milestone in our efforts to promote cross-border trade and empower businesses to tap into the emerging opportunities in the Indian market.”

Also showcasing the Bank’s support for international trade, Imtiaz added: “During the recent economic crisis Amãna Bank facilitated the import of critical medicines, food, and essential goods and we hope our INR trade channel will further support such businesses to not only grow but also contribute to preserve the livelihoods of all Sri Lankans.”

Commenting on the establishment of the INR Nostro Account Amãna Bank’s Head of Treasury and Financial Institutions Harindra Obeysekere said: “Over the years Amãna Bank has facilitated international trade in key currencies and with CBSL classifying INR as a designated currency, we were very keen on establishing an INR Nostro Account to support our customers and their counterparts with a convenient trade finance channel. As a result today the Bank’s international trade is facilitated in 11 currencies in partnership with 60+ correspondent banks while also being a part of Asian Development Bank’s Trade & Supply Chain Finance Program.”

Amãna Bank PLC is a stand-alone institution licensed by the Central Bank of Sri Lanka and listed on the Colombo Stock Exchange with Jeddah-based IsDB Group being the principal shareholder having a 29.97% shareholding of the Bank. The IsDB Group is a ‘AAA-rated multilateral development financial institution with a membership of 57 countries. Testifying its position as a leading practitioner of the non-interest-based banking model, Amãna Banks continued to be recognised among the Top 100 Strongest Islamic Bank’s in the World by The Asian Banker.

Amãna Bank does not have any subsidiaries, associates, or affiliated institutions apart from its engagement with OrphanCare as its Founding Sponsor.