Regulatory Alerts2013-12-10
Added · Updated
Central Bank of Seychelles Circular on Foreign Exchange Transaction Rates
The Central Bank of Seychelles requires all financial institutions to apply international cross rates for foreign currency conversions, including transactions between identical currencies. This mandate prohibits the alternative practice of routing conversions through Seychelles Rupees using sequential buying and selling rates. Issued under the Financial Institutions Act 2004, the directive standardizes pricing mechanisms and ensures consistent application across the national financial sector.
CENTRAL BANK OF SEYCHELLES
P. O. Box 701, Victoria, Seychelles
Telephone: [+248] 428 20 00
Fax: [+248] 432 36 65
E-mail: enquiries@cbs.sc
Ref: FSS/FIA/4
Date: December 6, 2013
To all Financial Institutions
Rates on Foreign Exchange Transactions
In line with section 9 of the Financial Institutions Act 2004, financial institutions are hereby required to apply international cross rates for foreign currency transactions involving conversion from one currency to another currency (e.g. US Dollar to Pound Sterling) or foreign currency transactions involving similar currency (e.g. US Dollar to US Dollar).
The conversion from one currency into Seychelles Rupees at the Buying Rate and then to another currency using the Selling Rate is not permitted.
We thank you for your co-operation in ensuring adherence to this circular.
C. Abel (Ms)
Governor
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