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News - Financial

Banks are being urged to align their foreign exchange rates with the parallel market

May 09, 2025
Banks are being urged to align their foreign exchange rates with the parallel market
  • While the gap between the official and black-market rates has narrowed from over 100% to around 8%, the rates should be nearly identical
  • Currently, many banks impose service charges exceeding 10% on forex transactions to offset losses. While banks primarily earn from interest rather than FX dealings, these heightened fees reflect efforts to compensate for diminished assets.
  • With remittances and export revenues flowing in, banks can rebuild their forex assets over time, it is suggested.