The benchmark ‘spot’ continued to make gains, this time for the sixth consecutive market day to today as Central Bank of Sri Lanka (CBSL) correspondingly kept up its dollar buying ‘pause’ from the market for the sixth consecutive market day, this time gaining by between 0.03-0.13 per cent (0.10-0.40 rupees) to be trading at Rs 317.90/318.00 to the US dollar in two way quotes, market sources who didn’t want to be named told ‘BMD.’
Consequently the ‘spot’ has sharply gained by between 17.43 per cent to 19.49 per cent (67.10-77.00 rupees) to Rs 317.90/318.00 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 the ‘spot’ sharply fell by between 1.32-1.28 per cent (Rs five each) to be trading at Rs 385/395 to the dollar in two way quotes, statistics showed.
In related developments, CBSL strengthened the official ‘spot’ for the fifth consecutive market day to today, this time by 0.29 per cent (0.92 rupees) to Rs 318.52 to the dollar. In other developments, a year ago, CBSL, then under the purview of current Foreign Minister Ali Sabry, who was the Finance Minister at that time, weakened the administered ‘spot’ for the third consecutive market day to 9 May 2022, this time also sharply, by 1.73 per cent (Rs 6.19) to Rs 364.76 to the dollar,, resulting in a steep YoY strengthening of the official ‘spot’ by 12.68 per cent (Rs 46.24) 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.