- sashimaalTop contributor
- Posts : 5785
Join date : 2014-02-28
Foreign investors pause sales of Sri Lanka rupee bonds
Foreign investor holdings rose to 221.5 billion rupees in the week ending March 30, up slightly from 220.06 billion rupees.
In the week to March 23, foreign investors sold 17 billion rupees of rupee securities.
Sri Lanka rupee which fell close to 150 to the US dollar strengthened to below 147 in the interbank spot next market Friday amid intervention.
Market participants are borrowing heavily from the central bank's reverse repo window, where money is printed and injected to the banking system to prevent interest rates going up (sterilized foreign exchange sales).
A float of the currency is needed to fix the contradictory monetary and exchange rates.