( 3minutes read)
· Governor of the Central Bank of Seychelles (CBS) Caroline Abel recently issued a stern warning against speculating trades on the foreign exchange rate
· Abel made it clear that the central bank is not mandated to enter into such transactions as the buying and sale of foreign currencies is done at commercial banks and money changers
Governor of the Central Bank of Seychelles (CBS) Caroline Abel recently issued a stern warning against speculating trades on the foreign exchange rate. At a press conference, she gave an update on the island nation’s foreign exchange reserves policy and strategy. She flagged the negative effect of such speculations on the foreign exchange market.
The Central Bank chief the Central Bank mentioned that she had received several phone calls where people working with tourism delegations asserting that there was an agreement that when they get their payment, the Central Bank would buy the dollars at 24 rupees per dollar. She asserted that there was no such agreement in place and underscored that there would not be any such agreement and dubbed this as misinformation spread by the vested interests. It is crucial to address this speculation, which was dangerous. She explained that her institution is mandated in ensuring stability in the foreign exchange rate and the island nation’s economy.
Abel made it clear that the central bank is not mandated to enter into such transactions as the buying and sale of foreign currencies is done at commercial banks and money changers. The demand for foreign exchange, she said was still on the rise compared to what is being sold in banks, leading to the continuous depreciation of the rupee. This will lead to the rising cost of commodities.
