‘Spot’ unchanged Rs 360/364, 5th day

0
35

The benchmark, albeit administered market ‘spot’ closed yesterday (7), unchanged for the fifth consecutive market day at Rs 360/364 to the US dollar in two way quotes, market sources Finance Today’.

However, from 21 June 2022 to last Wednesday ( 29 June 2022), the ‘spot’ was trading weaker at Rs 360/365 to the dollar in two way quotes, before strengthening by a rupee to be quoted at Rs 360/364 to the dollar in two way quotes on the following day.

They said that the strengthening of the rupee after a 10 day-lapse last Thursday was led by the positive outcome that the IMF had in their discussions with the Government of Sri Lanka (GoSL), which ‘face to face’ talks concluded last Thursday.

The administered market ‘spot’ was down by between 78.22-79.31 per cent
(Rs 158-161) year on year (YoY), thereby causing cost push inflationary pressure as Sri Lanka is an import dependent economy, sources said.

The band in which the ‘guided market ‘spot’’ may currently operate is fixed at +/- three per cent of the officially administered “spot” value, where the latter is applicable for transactions involving the GoSL, CBSL and or between the GoSL and/or CBSL with the market, which was fixed at Rs 360.82 to the dollar yesterday.

They further said that trades in the administered market ‘spot’ (Rs 360/364) yesterday 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.

In like developments, the administered ‘spot’ for official purposes, such as for trades involving CBSL, GoSL and/or CBSL, GoSL and the market, YoY to  yesterday has depreciated by  80.50 per cent (Rs 160.92).

 Yesterday, the value of this official administered ‘spot’ was fixed at Rs 360.82 to the dollar, while a year ago it was Rs 199.90. Meanwhile, the straitjacketed, inflexible administered market ‘spot’ a year ago was fixed at Rs 202/203 to the dollar in two way quotes for the second consecutive market day to 7 July 2021.

By Paneetha Ameresekere