CB buys Rs. 90 b in T-bills

Thursday, 17 January 2019 01:35 - - {{hitsCtrl.values.hits}}

Purchase made on Treasury request after delay in receiving expected foreign funds
Transaction to be party reversed in Feb. and remainder in 1Q

The Central Bank yesterday said it had bought Rs. 90 billion in Treasury Bills in January and would reverse part of the transition next month and eventually offload the rest once the Government’s borrowing program is back on track.

The Central Bank subscribed to Treasury bills (T-bills) amounting to Rs. 90 billion in January 2019 at the request of the Treasury to assist financing needs of the Government due to the delay in receiving expected foreign currency financing arrangements as envisaged in the Treasury’s cash flow for the month of January 2019, the monetary authority said in a statement.

The Monetary Board has acceded to the Treasury’s request in the national interest and under exceptional circumstances.

“Having reviewed the macroeconomic consequences of subscribing to T-bills by the CBSL, the Government has agreed to reverse part of the transaction in February and the balance during the first quarter of 2019 once the Government’s borrowing program is brought back on track with realisation of expected financial arrangements,” it added.

IMF team to arrive in mid-Feb