The benchmark ‘spot’ remained unchanged at Rs 319/320 to the US dollar in two way quotes as buying pressure from the Central Bank of Sri Lanka (CBSL) to strengthen the country’s parlous foreign reserves far outweighed sustained ‘avurudu; inflows and exporter conversions, despite import pressure being negated by import controls and bans, today, market sources who didn’t want to be named told ‘BMD.’
Nonetheless, year on year (YoY) to today the ‘spot’ has gained by between 031 per cent to 3.03 per cent (one- 10 rupees)) to Rs 319/320 to the US dollar in two way quotes, data showed. A year ago the ‘spot’ was trading at Rs 320/330 to the dollar in two way quotes, data showed.
Meanwhile, CBSL sharply strengthened the official ‘spot’ for the third consecutive market day to yesterday (Monday 10 April 2023), this time too, sharply, ie by 0.37
In like developments, a year ago the market ‘spot’ strengthened by between 1.54 per cent to 1.49 per cent (Rs five) to Rs 320/330 to the dollar in two way quotes, data showed. ‘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.’ 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.