The offer rate of the benchmark ‘spot’ gained for the second consecutive market day to today, year on year (YoY), this time steeply by 2.48 per cent (Rs eight) to Rs 322 to the US dollar, market sources who didn’t want to be named told ‘BMD.’
‘Soft’ dollar buying by the Central Bank of Sri Lanka (CBSL) from the market to shore up the country’s parlous foreign reserves, coupled with continued and ‘heavier ‘avurudu’ inflows saw the ‘spot’ gain for the third consecutive market day to today, this time also sharply, ie by between 0.31 per cent-0.62 per cent (Rs one-Rs two) to 321/322 to the dollar in two way quotes, after previously falling for three consecutive market day to Thursday (30 March 2023), they added.
However, YoY to today though the “spot’s” sell rate only has weakened for the second consecutive market day to today, ie by 0.31 per cent (Rs one) to the dollar this time, nonetheless its offer/buy rate has gained for the second consecutive market day to date, this time sharply by 2.48 per cent (Rs eight). A year ago (4 April 2022) the market ‘spot’ was trading at Rs 320/330 to the dollar in two way quotes.
Consequently, CBSL sharply strengthened the official ‘spot’ by 1.14 per cent (Rs 3.72) to Rs 323.78 to the dollar today (Tuesday 4 April 2023). Nonetheless, a year ago then CBSL Governor Ajith Nivard Cabraal sharply devalued the administered (official) ‘spot’ by 3.97 per cent (Rs 11.86) to Rs 310.86 to the dollar before resigning, thereby also resulting in a YoY weakening of the official ‘spot’ by 4.16 per cent (Rs 12.92) to the dollar by today.
In related developments, a year ago the ‘buy’ rate of the market ‘spot’ weakened by 1.54 per cent (Rs five) to Rs 330 to the dollar, however its sell/offer rate remained unchanged at Rs 320 to the dollar, resulting in the market ‘spot’ ending at Rs 320/330 to the dollar in two way quotes on 4 April 2022. ‘Spot’ trades are settled after two market days from the date of trading. CBSL the steward of GoSL debt and of its foreign reserves deals in the official ‘spot.’