Be Good

Central Bank, Governor A. S. Jayawardena said foreign exchange market should take a longer-term view of the rupee and avoid aberrant behavior.
The governor said recent political uncertainty has not changed the economic fundamentals yet and the foreign exchange market should be a lot more resilient than it has been. rn

rnLarge capital and aid flows coupled with increasing confidence in the economy led the rupee to appreciate against the US currency last year.rn

rnHowever, the Presidents take over of three key ministries led to panic in the foreign exchange market and a depreciation of the rupee.rn

rnCentral Bank says the foreign exchange market should be more resilient.rn

rnldblquote The fundamental economics of the country remains the same. They should not react like the Stock Market but should take a long-term view,
dblquote Central Bank Governor A. S. Jayawardena, told LBR. rn

rnThe appreciation of the rupee in the last few days of January is a sign the market is trying to settle, the Central Bank said.rn

rnThe dollar closed at ninety-seven and thirty cents on Friday up from the ninety-nine levels seen a few weeks ago.rn

rnForex traders said intervention by the Central Bank over the last few days also helped stabilize the market.rn

rnThe governor also said there had been a form of depreciation even when the dollar held steady against the rupee for a long time.rn

rnHowever, the rupee has been steadily depreciating against the currencies of other trading partners.rn

rnldblquote The rupee has been remarkably stable against the dollar during the recent times. But the US dollar is going down in the world. Our currency is stable against the dollar but depreciating against other trading partners,
dblquote he pointed out.rn

rn

-LBR Newsdesk: LBOEmail@vanguardlanka.comrn