‘Spot’ unchanged at Rs 380/390


The benchmark market ‘spot’ closed unchanged at Rs 380/390 to the US dollar in two way quotes, on Friday, over its Thursday’s close, market sources told ‘Finance Today’.

However, a year ago the ‘spot’ had closed administratively ‘stronger’ at Rs 199/200 to the dollar in two way quotes. Since 28 April 2021 to 9 March 2022, a unique thing happened in the country’s interbank FX market, where for the first time after the liberalisation of the economy on 21 July 1977, the interbank FX market went virtually dead after Central Bank of Sri Lanka (CBSL) started fixing the ‘spot’, void of hardly any CBSL intervention in the interbank FX market. However, the exchange rate was once more liberalised 11 months later on 10 March 2022.

In related developments, the administered ‘spot’ was fixed at Rs 199.59 to the dollar in two way quotes by CBSL a year ago, compared to a weaker administered rate of Rs 358.57 to the dollar on Friday, down 79.65 per cent (Rs 158.98) YoY.

‘Spot’ trades are settled after two market days from the date of transaction. CBSL, the steward of GoSL debt and of its foreign reserves, deals in ‘spot’. The banking regulator is also CBSL.  The ‘spot’ is administered by CBSL to show GoSL’s foreign debt in rupee terms to be of a lower value for accounting purposes, it’s learnt.

By Paneetha Ameresekere