Sri Lanka rupee at 364 to TT dollar, guidance rate at 359.65

ECONOMYNEXT – Sri Lanka’s commercial banks quote the rupee at 364 against telegraphic transfers on Wednesday (18) while the central bank set a daily guidance rate for interbank spot trade for 359.65 plus or minus 2.50.

Banks could quote 2.50 rupees plus or minus under the new direction and the rate is set below the market rates.

The kerb rate has also eased after spiking last week.

The central bank stopped quoting day rates on January 23 when the rupee was floated with an interest rate correction after the soft peg collapsed, amid a war. In 2021 and the central bank also started enforcing a rate incompatible with the policy rate at around 203 to the US dollar.

Sri Lanka’s rates were hiked by new Governor Nandalal Weerasinghe which is expected to slow credit.

On Thursday, Sri Lanka is having a policy review meeting for May. The central bank has already hiked the rates by 700 basis points but experts say there are chances of another 75 basis points hike.

Commercial banks were quoting 354/364 for telegraphic transfer dollars on Wednesday, down from 355/365 on Tuesday.

In the secondary market bills and bonds were inactive ahead of the weekly bills auction, dealers said.

The debt office is offering 90 billion rupees in the weekly bills auction split into 50 billion rupees maturing in three months, 20-billion in six months and another 20 billion maturing in one year.

(Colombo/May18/2022)