‘Spot’ unchanged at Rs 360/365

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The guided benchmark market ‘spot’, administered since last Friday (13 May), closed unchanged at Rs 360/365 to the US dollar in two way quotes for the third consecutive market day to yesterday, according to market sources -‘Finance Today’.

They further said that trades in the administered ‘spot’ (Rs 360/365) were mainly restricted to bank-client outright trades, while the interbank foreign exchange market was however dominated by swaps.

Meanwhile, year on year (YoY) as at yesterday, this administered market ‘spot’ has weakened by between 80.23-82.27 per cent (Rs 160.25-164.75), thereby causing cost push inflationary pressure as Sri Lanka is an import dependent economy.

In related developments, the administered ‘spot’ for official purposes YoY as at yesterday has depreciated by 80.07 per cent (Rs 159.88). Yesterday, the value of this official administered ‘spot’ was fixed at Rs 359.55, while a year ago it was Rs 199.67. Meanwhile, the administered market ‘spot’ a year ago was Rs 199.75/200.25 to the dollar in two way quotes.

The official administered ‘spot’ is used for transactions involving only the GoSL, Central Bank of Sri Lanka (CBSL) and the country’s foreign reserves. It’s administered to show Sri Lanka’s foreign debt in rupee terms low, while in the case of the administered market ‘spot’, to show a lower cost of living and/or inflation.

By Paneetha Ameresekere