The benchmark, albeit administered market ‘spot’ closed Friday (15) unchanged for the tenth consecutive market day at Rs 360/364 to the US dollar in two-way quotes, market sources told Finance Today.
However, from 21 June 2022 to 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.
In related developments, during this period last year, where then too the administered, made worse by an inflexible market ‘spot’ in operation, closed unchanged for the seventh consecutive market day to 15 July 2021 at Rs 202/203 to the dollar in two-way quotes.
Meanwhile, by Friday, 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.
They further said that trades in the administered market ‘spot’ (Rs 360/364) on Friday 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 Friday has depreciated by 80.71per cent (Rs 161.34).
On Friday, the value of this official administered ‘spot’ was fixed at Rs 361.24 to the dollar, while a year ago it was Rs 199.90. Meanwhile, YoY, the straitjacketed, inflexible administered market ‘spot’ a year ago was fixed at Rs 202/203 to the dollar in two way quotes.
by Paneetha Ameresekere