The indicative USD spot exchange rate of the Central Bank has surpassed 250 rupees (251.97 rupees) per dollar on Friday even though they earlier expected forex transactions to take place at levels that are not more than 230 rupees per dollar.
Accordingly, the indicative USD spot exchange rate which is the weighted average rate of all actual USD/LKR SPOT transactions executed throughout the previous business day in the domestic inter-bank foreign exchange market has been increased by 50 rupees in the last four days.
Dollar exchange rates of banks have also been adjusted upwards with buying rates at around 250 rupees per dollar and selling rates at around 260 rupees per dollar.
The Executive Board of the IMF recently recommended a gradual return to a market-determined and flexible exchange rate to facilitate external adjustment and rebuild international reserves.
Following the recommendation, the Central Bank said greater flexibility in the exchange rate will be allowed to the markets.