Thursday Nov 14, 2024
Thursday Nov 14, 2024
Friday, 25 December 2020 01:33 - - {{hitsCtrl.values.hits}}
The Central Bank said yesterday it was taking steps to stem what it described as «undue» depreciation of the rupee.
The rupee depreciated sharply against the dollar this week with commercial banks› dollar selling rate at 194.66 against last Friday›s 190.13.
«The Central Bank is of the view that the recent increase in volatility of the exchange rate is unwarranted and unacceptable,» the monetary regulator said in a statement yesterday.
It said among other measures, the Central Bank will take appropriate action aggressively hereafter to contain this volatility in the domestic foreign exchange market.
The Central Bank expects that these actions, together with the continuation of the curtailment of non-essential imports, will enable the rupee to appreciate within the next few days towards the levels of below Rs. 185 per dollar observed in November.
In its statement, the Central Bank reiterated that official reserves remain at sufficient levels.
At present, gross official reserves are at $5.6 billion. Discussions with the Central Bank’s domestic and foreign counterparts to boost the level of reserves are also reaching an advanced stage of conclusion. The receipt of these expected inflows, as well as the ongoing improvements in the domestic production economy leading to the expansion of foreign exchange earnings, will facilitate the maintenance of exchange rate stability, while meeting Sri Lanka’s debt obligations on time, in the period ahead as well, the statement added.
