The Central Bank Governor Nivard Cabraal yesterday updated the CEOs of banks on the latest initiatives in terms of allowing flexibility in the exchange rate.

CBSL informed banks that as greater flexibility in the exchange rate is now allowed, from 9 March it will discontinue the incentive of Rs. 8 per dollar offered on the conversion of workers’ remittances and the incentive of Rs. 10 per dollar on the conversion of foreign currency notes held in hand.

Governor Cabraal also said the requirement of the sale of 25% of the converted workers remittances and mandatory converted export proceeds by banks to the Central Bank will continue.

Bank CEOs were also told by Cabraal that the recent decision of the Government to provide a new incentive to expatriate workers who convert remittances would be clarified by the Government in due course.

Workers remittances via official channels to get Rs. 238 per dollar