‘Spot’ unchanged, 18th day

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The guided benchmark market ‘spot’ administered since 13 May closed unchanged at Rs 360/365 to the US dollar in two way quotes for the eighteenth consecutive market day to Friday (10 June), nonetheless down by between 80.23-82.27 per cent (Rs 160.25-164.75) year-on-year (YoY), thereby causing cost push inflationary pressure, market sources told ‘Finance Today’.

The band in which the ‘guided market spot’ may operate is +/- three per cent of the administered ‘spot’ value for transactions involving the Government of Sri Lanka (GoSL), Central Bank of Sri Lanka (CBSL) and or between the GoSL and/or CBSL with the market, which was Rs 359.80 to the US dollar on Friday.

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

YoY as at Friday, 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, such as for trades involving CBSL, GoSL and/or CBSL, GoSL and the market, YoY to Friday, the administered official ‘spot’ has depreciated by 80.19 per cent (Rs 160.12).

 On Friday, the value of this official administered ‘spot’ was fixed at Rs 359.80 to the dollar, while a year ago it was Rs 199.68. Meanwhile, the straitjacketed, inflexible administered market ‘spot’ a year ago was Rs 199.75/200.25 to the dollar in two way quotes, the seventeenth consecutive market day to 10 June 2021, that it has remained unchanged at these levels, YoY.

Paneetha Ameresekere