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?

Sri Lanka forex reserves hurt by gold price fall Vote_lcap68%Sri Lanka forex reserves hurt by gold price fall Vote_rcap 68% [ 178 ]
Sri Lanka forex reserves hurt by gold price fall Vote_lcap18%Sri Lanka forex reserves hurt by gold price fall Vote_rcap 18% [ 47 ]
Sri Lanka forex reserves hurt by gold price fall Vote_lcap13%Sri Lanka forex reserves hurt by gold price fall 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



Latest topics

» RENUKA AGRI FOODS PLC (RAL.N0000)
by soileconomy Today at 2:56 am

» CLC placed on a Slingshot . . . !!!
by cseguide Yesterday at 11:30 pm

» SUNSHINE HOLDINGS PLC (SUN.N0000)
by LHW Yesterday at 10:35 pm

» WATAWALA PLANTATION PLC (WATA.N0000)
by Niwa Yesterday at 10:22 pm

» ELPL-WATA-UDPL
by Niwa Yesterday at 10:14 pm

» Dusit Thani Sri Lanka project halted?
by js71 Yesterday at 8:48 pm

» BOGALA GRAPHITE LANKA PLC
by cheetah Yesterday at 8:19 pm

» WATA good times are ahead
by cseguide Yesterday at 8:16 pm

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by jaya Yesterday at 6:50 pm

» EXPO/BILL/LOLC
by SAGA Yesterday at 6:35 pm

» The fate of NIFL .. CLC .. LOFC under LOCH
by Shivanthini Yesterday at 3:57 pm

» CLC - Bull & Bear LOCKED HORNS - can blast at any time.
by Shivanthini Yesterday at 3:55 pm

» CFLB hidden gem
by skyfall Yesterday at 2:13 pm

» LLUB Dividend
by rajithasahan Yesterday at 1:49 pm

» GLAS will be winner with Super Gain.
by invest thinker Yesterday at 11:36 am

» Next Bull - ELPL/Elpitiya Plantation
by Tissa Yesterday at 6:31 am

» PEOPLE'S INSURANCE PLC (PINS.N0000)
by Ekanayake90 Sun Oct 24, 2021 9:52 pm

» What happen to Dhammika Perera
by Basu Sun Oct 24, 2021 8:48 pm

» AEL becomes the major producer & supplier of asphalt concrete in Sri Lanka
by samaritan Sun Oct 24, 2021 3:44 pm

» KOTAGALA PLANTATION PLC (KOTA.N0000)
by Tissa Sun Oct 24, 2021 11:38 am

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™ » Sri Lanka forex reserves hurt by gold price fall

Sri Lanka forex reserves hurt by gold price fall

2 posters

Go down  Message [Page 1 of 1]

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
July 19, 2013 (LBO) - Sri Lanka's central bank, an active trader in gold, has seen losses from steep falls in the precious metal in 2013 after making steady profits over several years as prices rose, according to published data.

In 2012 Sri Lanka's central bank was a net seller by more than four tonnes in January and February when gold prices rose above 1750 dollars an ounce and was a net buyer in May and June when prices fell to as much as 1585 dollars an ounce.

In December 2012 however Sri Lanka was a net buyer by 9.8 tonnes of gold when gold prices were around 1660 dollars an ounce.

Finance minister Sarath Amunugama replying opposition legislator Ravi Karunanayake in parliament in June said that the Central Bank ended the year with 13.62 tonnes of gold after buying 23.69 tonnes of gold and selling 20.04 tonnes.

The Central Bank traded gold with HSBC Bank London, UBS Zurich, JPMorgan Chase Bank, Credit Suisse International, Bank for International Settlements, Merrill Lynch International Bank, Bank of Nova Scotia, Standard Chartered Bank, ANZ Bank, Toronto-Dominion Bank and Deutsche Bank, he said.

The year-end stock was up 3.64 tonnes was valued at 727 million US dollars or about 1660 dollars an ounce.

Since the gold crashed to about 1200 dollars an ounce by end June and has recovered to about 1280 dollars an ounce.

In the first quarter Sri Lanka's Central Bank had bought about a tonne of gold a month and had 16.6 tonnes of gold according to data released by World Gold Council, an industry body which worth about 688 million US dollars at a price of 1290 dollars an ounce.

The Central Bank said there were about 312 million US dollars in marked-to-market losses in cross-currency movements and gold by May, when forex reserves dropped by about 200 million US dollars to 6.6 billion US dollars.

Gold prices generally go up when the US Federal Reserve prints money, destroys the intrinsic value of the dollars and generates global inflation.

Before Federal Reserve was created gold was just 22 dollars an ounce and there was no permanent inflation in the US or world.

Gold prices (and other precious metals, base metals, oil and food commodities) can fall when US monetary policy is better and credit growth is slow or negative.

Bursting credit bubbles are usually accompanied by deflation but following the 2008 bubble and bank run, though gold fell from 1,300 dollars to around 850 unprecedented Fed money printing pushed prices back up.

The Fed is now due to step off the gas pedal and the Euro Zone, the other key reserve currency area has seen deleveraging.
Sri Lanka's banks and finance companies are also exposed to gold-backed loans given during the bubble. Finance companies, which are more aggressive have generally given a larger percentage on credit than banks, analysts say.
http://www.lankabusinessonline.com/news/sri-lanka-forex-reserves-hurt-by-gold-price-fall/1870873682

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
GOLD edging up to 1300 that should be interesting know.currently at 1295

Back to top  Message [Page 1 of 1]

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