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.

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


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» DIPD/HAYC/HAYL
by Mr. X Today at 3:44 pm

» GLAS will be winner with Super Gain.
by jason12 Today at 2:08 pm

» B P P L HOLDINGS PLC (BPPL.N0000)
by Bakka1988 Today at 1:36 pm

» LANKA ALUMINIUM INDUSTRIES PLC (LALU.N0000)
by Jana Today at 12:18 pm

» WIND FORCE WIND
by stockchaser Today at 11:17 am

» What will happen tomorrow?
by madukp Today at 10:53 am

» Growing Fear
by Wickyz Today at 9:31 am

» ALUMEX PLC (ALUM.N0000)
by Bakkabwoi Yesterday at 8:24 pm

» Daily Foreign Transactions
by Pradeep90 Yesterday at 6:54 pm

» First capital holdings CFVF.N0000
by invest thinker Yesterday at 6:25 pm

» The market is not out to “get” you but is just flowing along, and your position just happens to be carried along with it.
by dayandacool Yesterday at 4:49 pm

» විජේදාසගේ... voice cut ප්‍රතිඵල
by reyaz Yesterday at 4:15 pm

» KGAL - THE SLEEPING GIANT
by THASSIM Yesterday at 2:21 pm

» ???? අප්‍රේල් 16 ???? මේ දින 3 කෙටි සතියත් කොළපාටින් අවසන් වුනා
by Wickyz Tue Apr 20, 2021 12:54 pm

» LDEV LDEV LDEV
by Eranga87 Tue Apr 20, 2021 10:27 am

» No trader can flee from making a mistake. It’s just that you need to be careful about not repeating your mistakes.
by Mithooshan Tue Apr 20, 2021 7:42 am

» SWISSTEK (CEYLON) PLC (PARQ.N0000)
by Chithi Mon Apr 19, 2021 7:45 pm

» ROYAL CERAMICS PLC (RCL.N0000)
by Jana Mon Apr 19, 2021 6:14 pm

» US dollar trading lower, euro near new high
by target1 Mon Apr 19, 2021 1:38 pm

» LANKEM DEVELOPMENTS PLC (LDEV.N0000)
by Thushara Ayya Mon Apr 19, 2021 11:59 am

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » Why Sri Lanka has loosened its hold on the rupee

Why Sri Lanka has loosened its hold on the rupee

Go down  Message [Page 1 of 1]

GameUP1030

GameUP1030
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Why Sri Lanka has loosened its hold on the rupee

Why Sri Lanka has loosened its hold on the rupee  Z_pii-Why
Sri Lanka's Central Bank is allowing the local rupee to become more market-oriented but like Bejing, it has shied away from turning the currency into a true free float.
The Central Bank of Sri Lanka (CBSL) said on Friday that it would stop quoting a reference rate for the currency, letting markets determine the rate instead, as sliding foreign reserves and weak exports worry officials.
"The sharp decline in Sri Lanka's foreign exchange reserves during 2015 has forced the central bank to stop intervening to stabilize the currency," Rajiv Biswas, Asia-Pacific chief economist at IHS, told CNBC on Monday.Reserves dropped by $638 million on-month to $6.8 billion in July, down from $9.18 billion in August 2014, and only a modest recovery is expected going forward after a recent $1.1 billion currency swap agreement with the Reserve Bank of India."This is a welcome and overdue move...Given Sri Lanka's relatively low reserve cover, a FX peg is clearly unsustainable," Citi economist Johanna Chu noted on Monday.
However, the CBSL said it would still intervene when necessary to cap excessive volatility and prevent a depreciation free-fall, similar to China's current system that traders call the 'managed float.' The Sri Lankan rupee has lost 3 percent against the greenback since Beijing's landmark announcement to devalue the yuan one month ago. China is Sri Lanka's top investor and second-largest trading partner so a cheaper yuan hurts Sri Lankan goods.
Emerging markets Vietnam and Kazakhstan have announced similar moves in the past month in an effort to prop up their economies, which are being buffeted by China's yuan depreciation, slumping commodity prices and investment outflows ahead of a potential U.S. interest rate hike. "We're looking to liberate the currency markets," Arjuna Mahendran, CBSL governor, told CNBC last week. "In the past, we had a quasi-Chinese system where prices were controlled. The government's plan is to move that into a market-driven fashion, so we can respond to international price movements and absorb any external punches."Aside from declining reserves, capital flows were a key factor behind Friday's decision.
Foreign holdings of rupee-denominated Treasury securities declined by $740 million in the past three months, according to Citi data.Moreover, political stability has returned with the formation of a new unity government under President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe following general elections last month.
Investors may welcome Friday's decision, but officials still have plenty of work cut out for them."With (foreign currency) interest payments consuming over a third of revenues, the government will likely need to impose tighter fiscal (and monetary) policies to avert a negative vicious spiral," Chu noted, referring to the possibility Sri Lanka could be forced to issue bonds in order to pay the coupons on existing bonds.
Sri Lanka has the region's highest government debt at 72 of gross domestic product, 40 percent of which is foreign.So, where now for the currency? Gradually lower, it seems.But because of its high debt burden, Colombo will unlikely be able to tolerate significant currency depreciation and thus will be forced to intervene regularly, according to Chu.
Meanwhile, Biswas of IHS believes the rupee remains vulnerable to further downside pressures in coming months as global investors continue reallocating assets out of emerging markets. - (Courtesy - CNBC) 
- See more at: http://www.dailynews.lk/?q=business/why-sri-lanka-has-loosened-its-hold-rupee#sthash.jrJbDqCA.dpuf

Back to top  Message [Page 1 of 1]

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