Banks stepping up dollar conversions

A few banks are pushing their efforts towards foreign currency conversion, keeping in line with a Central Bank (CB) circular to banks saying to incentivise customers who do so.

The CB has directed banks to provide Rs. 2 extra for each converted US dollar in a bid to buffer up market liquidity.

HSBC is one such bank which is going ahead with attracting its customers to convert their dollar earnings. "Your foreign exchange conversions to LKR just got more rewarding. Here's a chance to win an iPhone 12 Pro every month when you convert your foreign currency to LKR. Earn 1 point for every USD 2,500 or equivalent in any other foreign currency converted. Accumulate the highest points for the month and you could walk away with an iPhone 12 Pro monthly. Valid until 7 July," was a message received by certain HSBC customers this week.

The incentive to pay Rs.2 per US$ was proposed in the 2021 Budget targeting Sri Lankan migrant workers who repatriate millions of dollars from their earnings annually, and others earning foreign currency.