The Central Bank of Seychelles will use foreign exchange from the country’s international reserves for the unmet demand of recent days.
This was approved by the Central Bank of Seychelles (CBS) board during an extraordinary meeting held yesterday.
This decision has been taken in view of a notable reduction in foreign exchange inflows due to the COVID-19 pandemic – a situation which has given rise to instances where demand for foreign exchange has not been fully met in the past week. It is predicted that the situation pertaining to the supply of foreign exchange will persist over an uncertain period.
As Seychelles has a free-floating exchange rate regime, the CBS expects an adjustment in the exchange rate, which should translate in a reduction in demand for foreign exchange, as the economy adapts to this reality.
The CBS will continue to monitor the market and stands ready to ensure the orderly functioning of the foreign exchange market.
Source: Central Bank of Seychelles