The Central Bank’s Monetary Board this week decided to include the Chinese currency Renminbi in the list of designated currencies permitted for international transactions through banks in Sri Lanka.
Accordingly, the public can now undertake all permitted transactions in foreign currency in Renminbi with banks authorized for such transactions, according to a Central Bank statement.
China is recognized today as the world’s second largest economy, while also being a leading player in international trade, investments, and foreign reserves. It also enjoys extensive economic connections with many countries, as a result of which the Renminbi has been gradually evolving as a globally acceptable currency. Since Sri Lanka too has a growing volume of trade and investments transactions with China, the use of the Chinese currency, Renminbi, in banking transactions would significantly facilitate such trade and investments, the statement said.
The other currencies in the designated list are Australian Dollar, Canadian Dollar, Danish Kroner, Euro, Hong Kong Dollar, Japanese Yen, New Zealand Dollar, Norwegian Kroner, Pound Sterling, Singapore Dollar, Swedish Kroner, Swiss Franc and United States Dollar. Banking analysts said that given the increasing links with India on trade, finance and travel, the Indian currency (Rupee) is likely to be the next on the list of designated currencies. |
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