Category: Money

Sept 15, 2011 (LBO) – Sri Lanka’s central bank is ready to start daily cash auctions in money markets Governor Nivard Cabraal said, as dollar sales to maintain a currency peg rapidly sucked rupees out of the banking system. “If liquidity is low and we do not have excess liquidity, we will resume daily auctions,” […]

Sept 13, 2011 (LBO) – Sri Lanka’s rupee continued to be pressured in forex markets with the spot dollar held at 110. 10 rupees with forex sales by authorities Tuesday, dealers said, while liquidity tightened despite fresh injections. Excess liquidity in the interbank market fell to 27. 6 billion rupees Tuesday from 31.4 billion rupees […]

Sept 09, 2011 (LBO) – Sri Lanka’s central bank said its exchange rate policy on the rupee is “appropriate” amid sustained pressure on the currency which has required steady interventions in forex markets to keep a peg to the US dollar. The Central Bank said recent reserve sales were to offset higher oil imports and […]

Sep 07, 2011 (LBO) – Sri Lanka’s dollar peg weakened by another 10 cents to 110.20 rupees in the spot market, amid continued pressure on the domestic currency, dealers said. The monetary authority’s unofficial two way quote was dropped to 109.70/110.10 Wednesday, in the wake of an earlier drop of 10 cents Monday. In the […]

Sept 05, 2011 (LBO) – Sri Lanka’s peg to the US dollar weakened 10 cents to 110. 10 Monday with the spot dollar being quoted around 110. 09/110.10 rupees as the currency continued to be under pressure, dealers said. Analysts say there could also be a ‘supply shock’ to the system in the form of […]

Aug 26, 2011 (LBO) – Sri Lanka’s rupee came under steady pressure as the spot dollar rate was held at 110.00 rupees with forex sales by monetary authorities, with interest rate pressure also resisted earlier in the week, dealers said. To repay holders the central bank has to either print money, worsening the balance of […]

July 15, 2011 (LBO) – Sri Lanka’s central bank has sold 416. 9 million US dollars in July to maintain a peg with the US dollar amid high credit growth that is drawing down excess rupee reserves in banks, official data showed. High credit growth in the banking system is has rapidly exhausted excess rupee […]

July 21, 2011 (LBO) – Sri Lanka raises has sold a 10-year sovereign bond at 6. 25 percent to raise one billion dollars from international markets, a source close to the deal said. Sri Lanka recently got a rating upgrade, but it is also balanced against turmoil in international bond markets, analysts said. The deal […]

July 15, 2011 (LBO) – Sri Lanka’s central bank has bought 92.5 million US dollars from interbank forex markets in June, ending two months of net selling, official data shows, though newer data points to fresh selling. By June 12, excess liquidity had fallen to 36 billion rupees. Day to day excess liquidity is also […]

June 29, 2011 (LBO) – Sri Lanka will allow international transactions to be conducted through banks in Renminbi, China’s currency, as trade and investment with the country grows, the island’s central bank said. China’s currency is pegged to the dollar, and has large US reserves, indicating that the currency is ultimately mostly backed by US […]

June 14, 2011 (LBO) – Sri Lanka’s foreign reserves eased to 7,055 million dollars by early June 2011 from 7,163 million dollars at the end of April, amid recent sales of dollars by the Central Bank, official data showed. Recent sales of dollars have been non-sterilized transactions which have sucked up excess rupee liquidity extinguishing […]

June 14, 2011 (LBO) – Sri Lanka’s central bank said it does not sell gold in the domestic market, but only in the international market adding that it was making the statement in response to recent reports. “The Central Bank manages the official international reserves of the country and maintains its foreign currency balances in […]