‘Spot’ unchanged for 49th day

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The ‘spot’ closed unchanged for the forty-ninth consecutive market day at Rs 360/364 to the US dollar in two way quotes to Friday (9), market sources told Finance Today.

Consequently on Friday, the administered market ‘spot’ was down by between 80-79.31 per cent (Rs 160-161), year on year (YoY); thereby causing cost push inflationary pressure as Sri Lanka is an import dependent economy, they said.

Meanwhile, on Friday, the value of this official administered ‘spot’ was fixed at Rs 362 to the dollar, while a year ago, it was fixed at Rs 199.98, down 81.02 per cent (Rs 162.02), YoY. In related developments,  the straitjacketed, inflexible administered market ‘spot’ a year ago was fixed at Rs 200/203 to the dollar in two way quotes, unchanged for the  third consecutive market day to 9 September 2021.

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 Government, the Central Bank and or between the Government and/or Central Bank with the market, which was fixed at Rs 362 to the dollaron Friday.

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.

By Paneetha Ameresekere