Seychelles’ Central Bank comments on Foreign Exchange Law

Posted in Business and Economy, Seychelles banking at 1:44 pm by Robert Klien

On October 12, a team led by Central Bank governor Pierre Laporte explained the requirements of the Foreign Exchange Act for those who use both the rupee and foreign currency in order to complete their transactions.

At a meeting that was held at the International Conference Centre, the Central Bank representatives answered questions of a 150-strong audience. Most of the visitors came from the tourism industry. This meeting was organised in order to explain, in a transparent manner, the provisions of the law after as far as, according to Laporte, many people had called the Central Bank asking to clarify certain aspects of the Foreign Exchange Act.

Laporte stressed that hotels must not set their own exchange rates, so, customers will know how much approximately they will be expected to pay for goods and services.

According to Laporte, goods and services should be advertised in rupees. However, there is an exception for adverts that appear abroad or on the Internet where they may be meeting both local and overseas clients. In the above-mentioned cases both the rupee and another currency are allowed.

Also, Laporte said that even though the demand for the local currency is increasing and many old notes are being withdrawn, the Central Bank of Seychelles does not intend to print any new notes over the next 2-3 years. The jurisdiction has enough notes that are not in circulation.

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