The Central Bank (CB) yesterday in a statement issued new directives on foreign exchange activities that broadly cover market practices and ethical standards.
The bank, with the view to further improve the standard of business conduct and good market practices for the effective and efficient functioning of the foreign exchange trading activities in Sri Lanka, has issued Banking Act Direction No. 1 of 2012 on foreign exchange trading activities of licensed commercial banks.
The Direction has been prepared after a consultative process with the respective stakeholders and considering the international best practices, it added in the statement. The Direction broadly covers the market practices, internal policies and procedures, ethics and standards to be practiced in conducting foreign exchange trading activities.
This Direction will be of significant importance and value since the smooth and efficient functioning of a foreign exchange market depends on the orderly conduct of foreign exchange trading activities with high professional standards. Further, as the market grows in size, diversity and complexity, the demand for uniform practices increases correspondingly.
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CB issues new forex trading directives