MORE CATASTROPHE TO COME
Exchange rate weakens 48 SLc
With Central Bank of Sri Lanka (CBSL) dictating moral suasion on one week's forward rates as well, the market was compelled to trade on two weeks' forwards at yesterday's trading after a lapse of 15 days, market sources told Ceylon FT.
Ceylontoday, 2015-04-21 02:00:00
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Exchange rate weakens 48 SLc
By Paneetha Ameresekere Ceylon Finance Today:
With Central Bank of Sri Lanka (CBSL) dictating moral suasion on one week's forward rates as well, the market was compelled to trade on two weeks' forwards at yesterday's trading after a lapse of 15 days, market sources told Ceylon FT.
As a result, the exchange rate (ER) weakened by 48 Sri Lanka cents (SLc) to be trading at Rs 133/90/95 to the US Dollar in two-way quotes in two weeks forwards yesterday, they said. This tenure was last traded on 7 April, at Rs 133/42/47 in
two-way quotes. Due to depreciating pressure, one week's forwards has been capped at
Rs 133/60 by moral suasion by CBSL, which, for several weeks has also capped the spot at Rs 132.90. Volumes were heavy yesterday, they said, due to return of import demand and lack of conversions and remittances taking place.
Meanwhile, CBSL will be raising Rs 31 billion from a Treasury T-Bond and a T- Bill auction to be held this week. Rs six billion will be raised from two T-Bond auctions of 2018 and 2022 maturities, with the amounts for each tenure detailed at rupees three billion and a further Rs 25 billion from a T-Bill auction. The T-Bond auction will be held today and the T-Bill auction tomorrow. Yesterday, T-Bonds of 2018 maturity were going at 8.15/20% in two way quotes in secondary market trading, while the 2022 maturity was not being quoted, they said.
Nevertheless, the 2021 maturity was going at 8.85%, they said. They further said one year, six and three months were being traded commensurate to the weighted average yields fetched at last week's auction, namely at 6.60%, 6.53% and 6.26% respective
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