Daily FT: Haven’t you guys ever heard of ’rounding off’?!
It means “to truncate the least significant digit or digits of a numeral, and adjust the remaining numeral to be as close as possible to the original number”.
Rounding off is fine but here it looks a big difference..nearly Rs.7 billion and SDR value doesn't tally. I just read the report at LBT it clearly defines.I think Central Bank wanted to show a bigger value than what they received
Have a look.
Rs.7.6386 Billion Figure Loss?
However according to economic analysts it is surprising to note that IMF noting it had disbursed a total of US $ 2.49 billion (SDR 1.6536 billion) and Central Bank of Sri Lanka noting that it received nearly US $ 2.548 billion (SDR 1.654 billion). Accordingly when the two statements are compared there is an error of nearly US $ 58 million (SDR 400,000) or nearly Rs. 7.6386 billion worth loss figure (calculated at US $ 1 = 131.70 average exchange rate on 20 July 2012).
Exchange Rate Difference
On the contrary when the Executive Board of the International Monetary Fund (IMF) on 24 July 2009 approved a 20-month Stand-By Arrangement for Sri Lanka it was reported to be in an amount equivalent to SDR 1.65 billion (about US$2.6 billion) to support the country's economic reform program. (go to IMF Press Release from here) Link: http://www.imf.org/external/np/sec/pr/2009/pr09266.htm
That time upon the Executive Board’s approval, an amount equivalent to SDR 206.7 million (about US$322.2 million) became immediately available to Sri Lanka.
During the period from 20 July 2009 to 26 July 2009 US $ exchange rate was at Sri Lankan Rs.115.7984 per US Dollar (data Sri Lanka Customs). And at the time (20 July 2009) the value of a Special drawing right (SDR) was nearly US $ 1.5757 (1 SDR = US $ 1.57575) and as at 20 July 2012 the value of a a Special drawing right (SDR) is nearly US $ 1.50580. It clearly defines the amount of US Dollars which could be received per SDR had dipped by 699.5 pips which in turn reflects that the value of a SDR had come down compared to US Dollar.
Special drawing rights (SDRs) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF). Not a currency, SDRs instead represent a claim to currency held by IMF member countries for which they may be exchanged.And 'Pips' relate to the smallest price movement any exchange rate can make. Because currencies are usually quoted to four decimal places
On the other hand in 24 July 2009 the average value of a US Dollar in Sri Lankan Rupees had been Rs.115.7984 and as at 20 July 2012 the average value of a US Dollar is reported to be Sri Lankan Rupees 131.7000 which in turn reflects that a cost of a US Dollar in Sri Lankan Rupees had increased by nearly 159,016 Pips within a period of 3 years.
As per analysts it reflects the effects on Sri Lanka's economic growth and US economic growth in the midst of global financial turmoil that started to emerge in late 2008.
Source : LBT.lk