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Last Updated : 2024-04-29 22:32:00
16 April 2024 02:00 am - 10 - {{hitsCtrl.values.hits}}
The Central Bank has purchased the most amount of dollars for a single month in March, a sign that the country is currently in a very comfortable position in its foreign currency liquidity, after two years into the worst currency crisis in the country.
According to the data released last week, the Central Bank purchased US $ 715.1 million in March, which is the highest ever in the last decade. While the monetary watchdog sold none, the dollar purchase is a sharp increase from the roughly US $ 240 million purchased from the banking system in February, on a net basis.
In January, the Central Bank purchased US $ 245.3 million and thus, the March net absorptions brought the first three months’ purchases to US $ 1,199.0 million.
The Central Bank later last month said it would intervene in the foreign currency market to prevent excessive volatility, as the rupee has in recent times appreciated quite significantly after it plunged to its lowest levels in 2022.
For instance, the rupee gained in value by 8.5 percent year-to-date, to trade at Rs.298.51 to a dollar on April 10, on the close of trading for the traditional New Year holiday last week. This was on top of the roughly 12 percent gain in the rupee in 2023.
As a result, the rupee has also emerged as the best-performing currency in the emerging markets in the first quarter.
These large purchases have been possible as tourism has once again returned to become a bright spot in the country’s economy, while the remittances have been pretty strong.
In the first quarter, the two generated US $ 1,025.9 million and US $ 1,536.1 million, respectively.
Besides, Sri Lanka now doesn’t pay most of its foreign currency loans and personal vehicle imports have remained suspended for four years now.
These things have provided much breathing room for the officials to rebuild the reserves, which depleted to near zero levels two years ago, to a level just shy of US $ 5.0 billion.
Sri Lanka fell into an economic crisis in 2022, after running out of foreign currency to bring down fuel, gas and most other essential items, as tourism trade was nearly decimated in the preceding years, due to the pandemic while the remittances reached a low while the exports were less than potential.
jude Tuesday, 16 April 2024 10:19 AM
More election gimmicks to bring the dollar down ahead of the election
Yomariodk@gmail.com Tuesday, 16 April 2024 11:23 AM
You are a gimmick
Nobody Tuesday, 16 April 2024 12:20 PM
If it was done during a period where the party you support was in power .. then it would have been praised. Typical Sri Lankan mentality. People like you are the reason Sri Lanka can never prosper.
Sarah Hedwige Tuesday, 16 April 2024 10:46 AM
The Governor of the Central Bank Mr Nandalal should be congratulated for doing an excellent job.He is a fearless and patriotic warrier.
amara Tuesday, 16 April 2024 02:34 PM
Yes their salaries should be increased ?
dana Tuesday, 16 April 2024 05:02 PM
Yes, in attempting of salary increase,he overly showed how. much egocentric, , inconsiderate, greedy opportunistic mercenary is this NW guy is
R F A Perera Tuesday, 16 April 2024 11:30 AM
We need to look at banks in Sri Lanka lending to private sector and individuals inside Sri Lanka both for investments and consumption in rupees and dollars as the demand for rupees and dollars are affected by these factors mainly in addition to non payment of bilateral loans and foreign loans for private creditors apart from non payments for interest for foreign loans Then we will know who is fooling whom.
Nagasena Palabedda Tuesday, 16 April 2024 03:31 PM
Such figures look good for modayas in the parliament! Any economist do not believe this without reasonable explanantions except the Governor!! Another point for the election win by unwanted refused people!!
Chrishain Jayalath Wednesday, 17 April 2024 01:04 AM
CB's mantra: Don't release money for imports. Buy all money coming from exports. Don't pay loans. Increase taxes to curb consumer spending. Bullshit round the clock. Govt's mantra: Increase energy prices, use Sinopec's oil without paying for it, decrease demand for essential goods. Bullshit round the clock
Tiktok Wednesday, 17 April 2024 02:48 AM
Don’t get too carried away with this $5b reserves. We had $1.5b (Chinese swap) in April 2022. IMF/ ABD/ World bank loan amounted to $3b since April 2022. Current reserve amount is $5b. So 1.5b $3b =$4.5b. So we have managed to save $500m ($5b - $4.5) over 24 months. This is without making any debt repayments and import restrictions. USD income (exports/ remittances / tourism) largely remained at similar levels to 2019 over the past 2 years.
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