Sri Lanka WORLD_ Sri Lanka Faces Rupee Dilemma

8/2/2019 Sri Lanka WORLD_ Sri Lanka Faces Rupee Dilemma

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ri Lanka WORLD:: Sri Lanka faces rupee di lemma

Analysts point out that diversifying into India and China would take much more time, and if Sri Lanka were to sustain itsearned reserves, the exchange rate would have to adjust in order to reflect the trading account, or domestic interest rateswould be affected as is already seen in the country s financial market.

The Religare report looks at the external sector, but says little of the domestic rupee financial market, where interest ratesare coming under pressure as the dollar soft-peg continues to be defended.

Re la ted News Ar t i c les :26-8-2011 Lanka faces rupee dilemma

Source(s)Associated Press

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s lma teJoined: Aug 2008Posts: 2501Member Profile

26 Sep 2011 11:58:25 GMT Report for

Gradual apreciation of the rupee or keeping it fixed against dollar is the best for thecountry...

goodhear t Joined: May 2008Posts: 1601Member Profile


Gradual apreciation of the rupee or keeping it fixed against dollar is the best for thecountry...

yeah, but is that what they planing to do?

sa leemtar iq Senior MemberJoined: Aug 2005Posts: 2912Member Profile


'The United States and Europe have been the major trading partners for Sri Lanka foryears, cumulatively accounting for about 65-70% of the country s exports.

MR is risking more than two third of the export market by alienating the west to protechimself and his youngest brother from probing war crimes allegations and getting allianwith anti-west autocracies like Iran, Libya, Myanmar, China and Russia. The west will ntolerate leaders like Gaddafi because they are against western interests. A good leaderput his country's interest before his or his family's.

Edited By - saleemtariq - 26 Sep 2011 12:21:27 GMT

Roshan2007 Senior MemberJoined: Dec 2006Posts: 13914Member Profile


Can CB stand up to its speeches?

Sri Lanka will not take all advice that is given: CB Governor

Sept 19, 2011 (LBO) - Sri Lanka will not take all economic advice that is given but chaits own course based on a longer term path, Central Bank Governor Nivard Cabraal saamid concern over continued defence of the island's dollar peg.

'We've got to be very clear to the public, to the economic stakeholders that advisors anot responsible for their actions,' Cabraal told a monetary policy forum in Colombo.'They can give advice they can leave the next day.

'People sometimes think when you want to take advice from outside and then you've gto only do that.

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'That is one of the dangers - that we have certain advice done publicly then othersbelieve we've got to take that advice.

'An economy does not stop with targets for certain times only,' Cabraal said. 'We thinkby 31st of December something should happen. What happens on the first of January?

'No we've got to understand that there is continuity. If you have continuity you have tensure that policy measures are put in place notwithstanding whatever advice that wereceive.

'To ensure that over a period of time that whatever we do will have the right outcomewhich are the outcomes that are expected by society by the country, by the economy

Sri Lanka has soft pegged monetary system built by the US Federal Reserve as part ofthe Bretton Woods system in 1951 which is prone to frequent balance of paymentscrises.

Analysts have warned that a Bretton Woods style peg trying to target the exchange aninterest rates at the same time will end up with predictable results.

The IMF advised against an interest rate defense of the peg, saying it will underminegrowth too much.

s lma teJoined: Aug 2008Posts: 2501

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What dillemma - Buy dollars when market is oversupplied, Sell dollars when market is short supply...

Sri Lanka forex intervention based on expected inflows-cbankhttp://in.reuters.com/article/2011/09/26/srilanka-forex-idINL3E7KQ29X20110926?rpc=401&feedType=RSS&feedName=domesticNews&rpc=401

COLOMBO, Sept 26 (Reuters) - Sri Lanka's intervention in the foreign exchange markehas taken into account expected future dollar inflows and will go forward in spite ofpersistent International Monetary Fund (IMF) pressure to limit it, the central bank saidon Monday.

Central Bank Governor Ajith Nivard Cabraal said the government was confident of its

position based on expected dollar inflows.

'We know where the money is coming from and we know it will go out. We know whenand where we have to pay it out. So we are very comfortable and confident about it. Whave also taken into consideration of our future (dollar) cashflows,' Cabraal told Reutein an interview.

The $50 billion economy's total reserves now stand at over $8.1 billion.

'At the time that the IMF structured the programme with us, our projection was to go a reserve position of about $3.5-$4 billion at the end. So we have gone well past that,Cabraal said.

The central bank defends the rupee with a narrow dollar trading band, which is shiftedeither side depending on the dollar supply and demand positions in the market.

Cabraal has consistently said the central bank will intervene to prevent sharp fluctuatibut will allow the currency to move gradually based on market forces.

'If the investors want to listen to stories they read and hear, that's their call. We haveinformation, perhaps more than they have, and we have taken a measured stand. Oustand has been in the past also proven right,' Cabraal has said.

In the past few months the central bank has been mostly a dollar seller due to highimporter demand.

'Various people for various reasons, when we sell they get upset. When we buy, they upset. We will take at a time when the money is coming more. We will give it out at thtime you don't have enough. So that's the balancing part we have done,' Cabraal said

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(Editing by Bryson Hull)

s lma teJoined: Aug 2008Posts: 2501Member Profile


Sad day for Sri Lanka...

UK plans bulk deportation of Eezham Tamil asylum seekershttp://www.tamilnet.com/art.html?catid=13&artid=34464

Why cant the white masters keep the toilet cleaners in their counries....

UK has taken a decision to deport more than 100 Eezham Tamil asylum seekers to SriLanka on 28 of this month. The Home Ministry of UK has taken this decision as a testcase to declare Sri Lanka a country free from human rights violations, said Eezham Tadiaspora activists protesting the deportation in a meeting convened by Tamil LawyersAssociation at Ealing Amman Temple in London on Sunday.

No British court or EU laws could save the cases of the Eezham Tamil asylum seekersthat are decided on the fast track system based on political considerations, Tamildiaspora activists said.

Too bad..

After the war, the UK is yet to acknowledge the genocide in the island or the right to sdetermination of Eezham Tamils as a solution.

How stupid these DieAssPora demalas can get to think anybody cares whether UKacknowledge self-determinatio or not...

By certifying Sri Lanka a free country for Eezham Tamils at this crucial juncture, whatwants to convene will have a long impact on Tamil- British relationship, the Tamildiaspora circles said.

Hikz... UK will go bankrupt without the Tamil-British relationship.. Stupid DieAssPoracircles, rectangles and squares..

If the UK really wants to stop the refugees coming, if it really wants the refugees to geback, if it really wants the Tamil diaspora to engage in productive ways in the island thare beneficial to the UK too, then it should help the liberation of Eezham Tamils, the Udiaspora activists said.

Please UK, come and liberate PizzaHam tamils...

gajan99Joined: Nov 2005Posts: 2014Member Profile


British-tamil relationship

ha ha ha ha ha ha haha ha ha

is it something unusual ?

I prefer if the UK gvmt keep those Dias pora wal there without sending here. if they cohere again will stsrt to discriminate the poor thamils here.

but if they start any struggles again here we will send them to NASA.

AnuD Senior MemberJoined: May 2005Posts: 53915


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Member ProfileChina was pressured so many times to allow their money float.

China did not do that.

Sri Lanka is a country that depends on imports. so , never should allow rupee toappreciate.

joepubl ic Joined: Oct 2010Posts: 1821Member Profile


Eezham Tamil diaspora activists protesting the deportation in a meeting convened byTamil Lawyers Association at Ealing Amman Temple in London on Sunday.

Shouting them self hoarse in Ealing (Eezhameee's can't let go old habits) Yet, there seeto be no 'Healing in Ealing'.

Sin No..

Edited By - joepublic - 26 Sep 2011 16:54:27 GMT

Lumbani Joined: Jul 2011Posts: 43Member Profile


Sri Lanka is a country that depends on imports. so , never should allow rupee toappreciate.

By the advice like these, Maummar Yaluwa His Excellency will be very pleased.Poor Cabral.

Edited By - Lumbani - 26 Sep 2011 17:51:01 GMT

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Sri Lanka WORLD_ Sri Lanka Faces Rupee Dilemma