Money Printing hits record high of Rs 481.5B
The Government’s (GoSL’s) face value money printing (FVMP) debt hit its highest figure for the year thus far, with a liability of Rs 481,497.87 million recorded today (02), according to Central Bank (CBSL) data.
This increase was aided by GoSL’s non-demand-pull-inflationary FVMP debt increasing by Rs 144,441.46 million (42.85 per cent), thereby upping its FVMP debt as a whole to Rs 481,497.87 million.
This increase of Rs 144,441.46 million was to aid GoSL and CBSL to meet external commitments of US$ 1,136.60 million; complemented by GoSL having to meet a maturing sovereign bond of US$ 1,000 million this month (October), thereby also making the country’s foreign reserves poorer by an equivalent amount (US$ 1,138.75 million). Conversions are based on the middle rate of the benchmark ‘spot’ as at 29 September (Tuesday), which was Rs 185.40 to the US dollar.