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Money printing: MP Champika Ranawaka right on the money

21 January 2021 12:02 am - 3     - {{hitsCtrl.values.hits}}

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Money printing is more formally known as deficit financing. It refers to when the Central Bank finances the government’s budget deficit by creating new money to directly purchase government securities issued by the treasury. The Central Bank’s purchases of treasury securities are reflected in the balance sheet of the Central Bank. Therefore, to quantify the money printed during the relevant period, FactCheck referred to the Central Bank’s purchases of government securities. 

To evaluate this claim, FactCheck consulted the Central Bank’s Daily Operations data set where the Central Bank’s treasury security holdings are published. As of 1 November 2020, the Central Bank held Rs. 488.17 billion worth of government securities. On 1 December 2020, the Central Bank held Rs. 618.12 billion worth of government securities. This indicates an increase in the Central Bank’s government security holdings of Rs. 129.95 billion during the period in question. This, in turn, indicates that an equivalent amount was printed during that same period.


Therefore, FactCheck classifies the MP’s statement as true.       

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

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  Comments - 3

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

 
  • sampath kalapriya Thursday, 21 January 2021 02:12 PM

    Central bank must be empty during that period

    vis8 Friday, 22 January 2021 07:10 AM

    Oh, by the way, this pervert will now be prosecuted for fraud soon. Those who kiss ass of this punk need to take a good look at themselves.

    Appuhamy Thursday, 28 January 2021 11:12 AM

    Oh boy, you are not educated enough to understand the process of the govt printing money.....and how it affects the economy. Look for the correct thread on google.


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