The benchmark ‘spot’ continued to make gains, this time for the seventh consecutive market day to today, with today sharply gaining by between 0.63-0.69 per cent (Rs two- 2.20) to 316.00/316.20 to the US dollar in two way quotes as Central Bank of Sri Lanka (CBSL) correspondingly kept up its dollar buying ‘pause’ from the market for the seventh consecutive market day, market sources who didn’t want to be named told ‘BMD.’
Consequently the ‘spot’ has sharply gained by between 17.92- 19.95 per cent (69.00-78.80 rupees) to Rs 316.00/316.20 to the dollar in two way quotes, year on year (YoY) today, thereby defraying cost-push inflationary pressure, data showed. Meanwhile, a year ago the ‘spot’ was trading unchanged at Rs 385/395 to the dollar in two way quotes, statistics showed.
In related developments, CBSL strengthened the official ‘spot’ for the sixth consecutive market day to today, this time by 0.13 per cent (0.43 rupees) to Rs 318.09 to the dollar. In other developments, a year ago, CBSL kep the administered ‘spot’ unchanged at Rs 364.76 to the dollar, nonetheless resulting in a steep YoY strengthening of the official ‘spot’ by 12.79 per cent (Rs 46.67) to the dollar to today.
‘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.