The sell/offer rate of the benchmark ‘spot’ marginally weakened by 0.03 per cent (Rs 0.10) to Rs 321.90 to the US dollar today due to US dollar buying pressure by the Central Bank of Sri Lanka (CBSL) to strengthen the country’s parlous foreign reserves, though the “spot’s” ‘buy’ rate remained unchanged at Rs 321.60, resulting in the ‘spot’ in two way quotes to be trading at Rs 321.60/90 to the US dollar, market sources who didn’t want to be named told ‘BMD.’
However, the ‘spot’ has sharply gained by between 8.11 per cent to 10.58 per cent (28.40-38.10 rupees) to Rs 321.60/321.90 to the dollar in two way quotes, year on year (YoY) to today, thereby defraying cost-push inflationary pressure, data showed.
Meanwhile, a year ago (27 April 2022) the ‘spot’ sharply weakened by between 1.45-2.86 per cent (5-10 rupees) over its previous day’s close to be trading at Rs 350/360 to the dollar in two way quotes, statistics showed.
In related developments, CBSL strengthened the official ‘spot’ for the second consecutive market day to today (Thursday 27 April 2023), this time by 0.04 per cent (0.13 rupees) to Rs 321.63 to the dollar. In other developments, a year ago, CBSL, then under the purview of Basil Rajapaksa who was the Finance Minister at that time, sharply strengthened the administered ‘spot’ by 0.75 per cent (Rs 2. 57) to Rs 337.90 to the dollar, nonetheless resulting in a steep YoY strengthening of the official ‘spot’ by 4.82 per cent (Rs 16.27) to the dollar.
‘Spot’ trades are settled after two market days from the date of trading. CBSL the steward of Government of Sri Lanka (GoSL) debt and of its foreign reserves deals in the official ‘spot.’ The official ‘spot’ is usually artificially propped up to minimize the cost of GoSL’s foreign debt in rupee terms and also to minimize GoSL’s foreign debt servicing costs in rupee terms.