Cabinet mulls RMB and Yen bonds

22 August 2018 07:53 am - 3 - {{hitsCtrl.values.hits}}

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The Cabinet is reported to have decided to explore the possibility of issuing International Sovereign Bonds in Renminbi (RMB) and Japanese Yen instead of depending solely on the US dollar for the purpose of raising funds.

Sri Lanka currently issues such bonds only in US currency. However, the Cabinet decided to issue bonds in Chinese and Japanese currencies as well.

The Cabinet appointed a five-member committee comprising officials from the Treasury and The Central Bank to explore various possibilities and work out modalities for this purpose.

China promotes RMB as a currency to be used in international trading and has also signed currency swap agreements with several countries. It is doing so to avoid the exchange cost of converting to the US dollars when trading with the respective countries. (Kelum Bandara)

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Comments - 3

Jaliya Wednesday, 22 August 2018 08:22 AM

This is the foundation for another scam and it would be only second to the bond scam. Can we know who is the genius came out with this marvelous idea ? It is NOT the US$ appreciate from time to time it is the LKR devaluation that we see and feel. Therefore LKR will depreciate against JPY and RMB as well.

Maru Wednesday, 22 August 2018 12:28 PM

Jaliya, your not absolutely correct there! Firstly, the SL rupee is depreciated by the CBSL when imports are greater than exports, which creates a trade deficit! More reserves going out of the country. Secondly, the US doller is doing extremely well against all currencies. So since China is a major trade partner its better to exchange trade with a less demanding currency.

Unchikun Wednesday, 22 August 2018 09:40 AM

May I humbly suggest “Toilet Paper “!

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Cabinet mulls RMB and Yen bonds

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