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Join date : 2014-02-28
Sri Lanka will strengthen rupee to 130 to the US dollar: Finance Minister
Tue Jun 23, 2015 10:30 pm
COLOMBO (EconomyNext) – Sri Lanka will strengthen the rupee to 130 to the US dollar in two weeks from the current 133.90 to the US dollar Finance Minister Ravi Karunanayake told parliament.
Karunanayake said when the new administration came to power the rupee was 133.20 to the US dollar but it was now at 133.90 to the US dollar.
"Within two weeks we will reduce this to 130," Karunanayake told parliament Tuesday.
"Enough dollars are coming to the country. Investments are starting to come to the country."
The rupee had come under pressure from rising credit from the last quarter of 2014, but the Central Bank poured liquidity into the money market by not rolling over term reverse repo transaction and also cut rates in April.
Analysts had warned that low interest rates in the middle of rising state current spending and recovering private credit would put pressure on the US dollars.
Foreign investors in rupee Treasuries have been selling out over the past month adding to pressure on current transaction coming from low interest rates and rising credit. Over the week selling has increased.
Karunanayake said when the new administration came to power the rupee was 133.20 to the US dollar but it was now at 133.90 to the US dollar.
"Within two weeks we will reduce this to 130," Karunanayake told parliament Tuesday.
"Enough dollars are coming to the country. Investments are starting to come to the country."
The rupee had come under pressure from rising credit from the last quarter of 2014, but the Central Bank poured liquidity into the money market by not rolling over term reverse repo transaction and also cut rates in April.
Analysts had warned that low interest rates in the middle of rising state current spending and recovering private credit would put pressure on the US dollars.
Foreign investors in rupee Treasuries have been selling out over the past month adding to pressure on current transaction coming from low interest rates and rising credit. Over the week selling has increased.
- sashimaalTop contributor
- Posts : 5785
Join date : 2014-02-28
Sri Lanka to strengthen rupee to 129 in next two weeks: Finance Minister
Tue Jun 23, 2015 10:41 pm
June 23, 2015 (LBO) – Sri Lanka’s Finance Minister Ravi Karunanayake says the government will strengthen the rupee to 129/130 against the US dollar in the coming two weeks.
“When we tookover the government it was at 133.25 rupees to the US dollar and now it is at 133.90 rupees,” Karunanayake told reporters Tuesday.
“In two weeks we are bringing it to around 129 and 130 rupees. Large amount of dollars are coming into the country,”
“The country has taken loans more than the sustainable level. So the best thing would be to strengthen the rupee against the US dollar by managing it properly.” Karunanayake said.
The Finance Minister also compared the borrowings taken by the previous government for the first four months of last year against this year.
“For the first four months of 2014, the government has collected over 830 billion rupees as net borrowings from external sources.”
According to the Minister, 384 billion rupees was received from treasury bonds, 66 billion rupees from treasury bills and 47 billion rupees from Sri Lanka development bonds.
36 billion rupees has received through advances from central bank, 29 billion rupees from the bank over draft and 268 billion rupees from foreign loans, Karunanayake said.
Sri Lanka’s new administration has obtained 577 billion rupees net borrowings for the first four months to April 2015.
“When we tookover the government it was at 133.25 rupees to the US dollar and now it is at 133.90 rupees,” Karunanayake told reporters Tuesday.
“In two weeks we are bringing it to around 129 and 130 rupees. Large amount of dollars are coming into the country,”
“The country has taken loans more than the sustainable level. So the best thing would be to strengthen the rupee against the US dollar by managing it properly.” Karunanayake said.
The Finance Minister also compared the borrowings taken by the previous government for the first four months of last year against this year.
“For the first four months of 2014, the government has collected over 830 billion rupees as net borrowings from external sources.”
According to the Minister, 384 billion rupees was received from treasury bonds, 66 billion rupees from treasury bills and 47 billion rupees from Sri Lanka development bonds.
36 billion rupees has received through advances from central bank, 29 billion rupees from the bank over draft and 268 billion rupees from foreign loans, Karunanayake said.
Sri Lanka’s new administration has obtained 577 billion rupees net borrowings for the first four months to April 2015.
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