Minister Mangala Samaraweera correct on rupee appreciation

11 April 2019 12:01 am - 0     - {{hitsCtrl.values.hits}}

A A A

On 13 March 2019, the Daily News reported that Minister of Finance Mangala Samaraweera made the following statement on 12 March. “During the past 2 months, the rupee has appreciated by 2.5%.” In Sri Lanka, the public and media discourse on the value of the rupee is confined to its movement against the US dollar. On 1 January, the Spot Exchange Rate (rupees per USD) as reported by the Central Bank of Sri Lanka was Rs. 182.9113. On 11 March it was Rs. 178.3794. This is a 2.5% appreciation of the rupee against the US dollar.

However, exchange rates are volatile. Therefore, we also checked whether the thrust of the statement was more broadly correct in terms of the overall trend in the movement of the rupee, instead of being correct just for specific dates. Exhibit 1 shows the fluctuations of the Spot Exchange Rate from 1 January to 10 April. It shows that while the appreciation has not followed a linear path, overall, the rupee has been appreciating, and has continued to appreciate even after the statement was made. The total year-to-date appreciation is 4.5%. 

 

 

 


Therefore, since the minister’s claim is correct for the (approximate) range of two months and also correctly reflects the broader trend in the appreciation of the rupee, we classify his statement as TRUE..

 

Source: CBSL, Spot Exchange Rates, available at: 
https://www.cbsl.gov.lk/en/rates-and-indicators/exchange-rates/daily-indicative-usd-spot-exchange-rates

FactCheck is a platform run by Verité Research. 
For comments, suggestions and feedback, please visit
www.factcheck.lk.   

  Comments - 0


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




PM’s Advisor proposes to release EPF to members

Prime Minister’s Senior Advisor on Economic Affairs Ajith Nivard Cabraal ma

Covid-19 : Clusters and Stages Explained

The Covid-19 pandemic has resulted in a major public health emergency in Sri

Partly discipline, partly compulsion

Streets in Colombo, Gampaha and Kalutara Districts were largely deserted yest

Keep groceries open, provide vouchers for people: Former minister Dr.Harsha

Keeping the groceries open and providing vouchers for the people is a better