Sri Lanka: Central Bank "burns" it's meagre Reserves

God Father · 1 Sri Lanka: Central Bank "burns" it's meagre Reserves Sun Oct 01, 2023 9:16 am

God Father

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Sri Lanka: Central Bank "burns" it's meagre Reserves Philad10

Central Bank "burns" it's meagre Reserves to defend the currency.
The Central Bank "burned" a massive 19% of it's usable Forex Reserves of USD 2,465 mn as at end-July'23 by selling a whopping USD 467 mn to the Forex market to "defend" the LKR during the month of August'23.

In the meantime, IMF has frowned on their action by warning that *"Reserve accumulation has slowed in recent months"*:
With that warning, analysts expect the CB's LKR defence to be stopped soon, leading to a significant depreciation of the LKR in the coming months.

Usable Reserves
Reserves as at end-July'23 was USD 3,765 mn, from which the China SWAP of USD 1,300 mn has to be deducted.

blindhog

blindhog

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God Father wrote:

Central Bank "burns" it's meagre Reserves to defend the currency.
The Central Bank "burned" a massive 19% of it's usable Forex Reserves of USD 2,465 mn as at end-July'23 by selling a whopping USD 467 mn to the Forex market to "defend" the LKR during the month of August'23.

Why are you not talking about how much CBSL bought same month? whopping USD 296.50 mn.

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