Hold on to You Foreign Currency.

Kithsiri · 1 Hold on to You Foreign Currency. Thu Oct 06, 2011 9:43 am

Kithsiri

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The speculations are rife that the Sri Lanka Rupee will be allowed to float freely soon (after the upcoming elections & before the budget).

Hold on to you foreign currencies little more. Very Happy

Tiger · 2 Re: Hold on to You Foreign Currency. Thu Oct 06, 2011 8:53 pm

Tiger

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My understanding is that rupee will strengthen further more. Do you think that rupee will depreciate?

Rajaraam · 3 Re: Hold on to You Foreign Currency. Thu Oct 06, 2011 9:09 pm

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Tiger wrote:My understanding is that rupee will strengthen further more. Do you think that rupee will depreciate?

I think Rupee is seen as strong coz Srilanka borrowing in big way these days for infrastrtucture development and North,East rehabilitation programs etc. So we have enough Dollers and CB is also started selling Dollers in the international market as well. This keeps Rupee strong. But our Trade balance is still very bad. So if CB relax its controll Rupee will deffinetly depriciate to a level where it should be.

Rapaport · 4 Re: Hold on to You Foreign Currency. Thu Oct 06, 2011 10:06 pm

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http://forum.srilankaequity.com/t11259-positive-equity-foreign-inflows-by-year-end

echo28 · 5 Re: Hold on to You Foreign Currency. Thu Oct 06, 2011 10:58 pm

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You will like to know something regard to the SGD (Sing Dollar) It was Early Sept 1.20 vs USD. Then USD was at the lowest. All other currency were going up vs the USD. However their price on food items or products did not go down. Hotel rooms were also same it did not go down.

Normal practice is when the currency appreciates the price should come down. But it was not in Singapore. Since few weeks back USD has gone up and now the SGD has gone down depreciated to 1.3. Vs SL Rs. its around 84-85. Then it was @ 93.

Tiger · 6 Re: Hold on to You Foreign Currency. Thu Oct 06, 2011 11:34 pm

Tiger

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Rajaraam wrote:

Tiger wrote:My understanding is that rupee will strengthen further more. Do you think that rupee will depreciate?

I think Rupee is seen as strong coz Srilanka borrowing in big way these days for infrastrtucture development and North,East rehabilitation programs etc. So we have enough Dollers and CB is also started selling Dollers in the international market as well. This keeps Rupee strong. But our Trade balance is still very bad. So if CB relax its controll Rupee will deffinetly depriciate to a level where it should be.

If the currency is likely to devalue, its not good for stock market foreign investors. Cos their investment is in LKR hence in dollar terms its value goes down, we could see acceleration of foreign selling.

kam2011 · 7 Re: Hold on to You Foreign Currency. Fri Oct 07, 2011 11:30 am

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Tiger, I think best practice would be maintaining the value of rupee stable.More or less in same level. It should be stable for a longer period in order to encourage investment specially in short term business like equity investment. But Long term investors such as manufactures either foreign or local when they produce mainly for export markets such investor would like to see Rupee depreciation.Isn't it?

PGNN · 8 Re: Hold on to You Foreign Currency. Fri Oct 07, 2011 11:48 am

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Kithsiri wrote:The speculations are rife that the Sri Lanka Rupee will be allowed to float freely soon (after the upcoming elections & before the budget).

Hold on to you foreign currencies little more.

If you don't mind please give more info or the source of the info

thanx