FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post



Poll

Can there be another Covid-19 wave in Sri Lanka?

Heavy moral suasion, selective intervention steadies shaky rupee Vote_lcap68%Heavy moral suasion, selective intervention steadies shaky rupee Vote_rcap 68% [ 178 ]
Heavy moral suasion, selective intervention steadies shaky rupee Vote_lcap18%Heavy moral suasion, selective intervention steadies shaky rupee Vote_rcap 18% [ 47 ]
Heavy moral suasion, selective intervention steadies shaky rupee Vote_lcap13%Heavy moral suasion, selective intervention steadies shaky rupee Vote_rcap 13% [ 35 ]

Total Votes : 260

STOCK MARKET TRAINING
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Heavy moral suasion, selective intervention steadies shaky rupee

Heavy moral suasion, selective intervention steadies shaky rupee

2 posters

Go down  Message [Page 1 of 1]

sriranga

sriranga
Co-Admin
http://www.cbsl.gov.lk/pics_n_docs/latest_news/press_20130703ea.pdf


Heavy moral suasion, selective intervention steadies shaky rupee Cbsl10

http://sharemarket-srilanka.blogspot.co.uk/

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
* Import demand, foreign bond sales after Moody’s downgrade pressurise currency
* New data shows bank lending rates went up when monetary policy rates came down


Heavy moral suasion and direct dollar sales to selected banks by the Central Bank to cover import bills and Treasury bond sales by foreigners saw the rupee hold its ground against the US dollar yesterday (03) amidst depreciation pressure, currency dealers said.

"The rupee closed at the same range it opened, Rs. 130.60/65 against the US dollar with the currency coming under depreciation pressure on importer demand and foreigners selling down their Treasury bill holdings. Moral suasion was evident with the Central Bank selling dollars to those banks needing dollars to cover import bills and accommodate foreign bond sales," a dealer said not wanting to be named.

Another dealer said moral suasion was ‘heavy’.

Dealers said the sovereign rating outlook downgrade from ‘Positive’ to ‘Stable’ by Moody’s on Tuesday may have stoked some concerns. "We did not see bond sales by foreigners on Monday and Tuesday," dealers said. The Central Bank yesterday said Moody’s latest report was ‘ill-advised’, ‘backward-looking’ and ‘contradictory’.

Last week, foreigners pulled out a little more than Rs. 5 billion from Treasury bond and equity holdings.

The Central Bank said it would intervene to prevent sharp fluctuations in the currency.

Benchmark Treasury bill yields stayed flat at yesterday’s primary market auction despite a cut in the banking sector statutory reserve ratio by 200 basis points last week with new data showing a 75 basis point monetary policy rate cut did not bring down bank lending rates but increased them.

The Treasury bill auction was for Rs. 12 billion in maturing bills with the Central Bank accepting bids worth Rs. 10.6 billion from a total of Rs. 31.35 billion.

The three-month bill yield fell a marginal one basis point from last week to 8.65 percent; bids received Rs. 1,534 million, accepted Rs. 379 million.

The six month yield was unchanged from last week at 9.70 percent; Rs. 500 million accepted from bids amounting to Rs. 4,950 million.

The 12-month Treasury bill was also unchanged at a 15-month low of 10.66 percent from last week with bids amounting to Rs. 24,875 million of which only Rs. 9,539 million was accepted.

The Central Bank had cut the statutory reserve ratio from 8 percent to 6 percent in order to bring down market lending rates and spur economic growth.

A 75 basis point monetary policy cut since last year saw only the government benefit in terms of falling securities yields, whereas market lending rates had actually increased up to May 2013.

According to data published by the Central Bank last Friday (June 28), the average weighted lending rate of the commercial banking system was 16.25 percent as at end May 2013, up from 14.59 percent a year ago.

Secondary market Treasury bond yields increased yesterday with the more liquid five year bond yield increasing to 11.39/41 percent from Tuesday’s 11.33/36. The eight year yield moved up to 11.55/70 percent from 11.50/65 percent.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=82744

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum