ECONOMYNEXT – Sri Lanka’s rupee currency could be under downward pressure due to the U.S. President Donald Trump’s reciprocal tariff hike decision, currency dealers said.
US President Donald Trump imposed a 44 percent tax on Sri Lanka in an executive order in which he claimed as discounted reciprocal of about half the taxes and barriers imposed by the island on America.
Sri Lanka’s ‘reciprocal discounted tax’ is half of a deemed 88 percent in taxes charged on US products, according to a post by Trump on his Truthsocial.com social media site.
“If Sri Lanka doesn’t negotiate for a better solution, the rupee could be under depreciation pressure,” a currency dealer told EconomyNext.
There could be bigger impact is if Sri Lanka does not negotiate properly because unlike China and India, US has been a country with a trade surplus. High tariff means, there is a possibility of we getting lower dollar inflow, he said.
“Rupee is down today because of knee jerk reaction by some banks which covered short positions. There is hardly any importer demand for dollars these days.”
“People are still waiting for clarity from Trump administration to assess the impact on the rupee.”
https://economynext.com/sri-lanka-r...ressure-on-trumps-tariff-hike-dealers-213201/
@IndrajithGamage එන්ට අනාවැකියක් කියන්ට
US President Donald Trump imposed a 44 percent tax on Sri Lanka in an executive order in which he claimed as discounted reciprocal of about half the taxes and barriers imposed by the island on America.
Sri Lanka’s ‘reciprocal discounted tax’ is half of a deemed 88 percent in taxes charged on US products, according to a post by Trump on his Truthsocial.com social media site.
“If Sri Lanka doesn’t negotiate for a better solution, the rupee could be under depreciation pressure,” a currency dealer told EconomyNext.
There could be bigger impact is if Sri Lanka does not negotiate properly because unlike China and India, US has been a country with a trade surplus. High tariff means, there is a possibility of we getting lower dollar inflow, he said.
“Rupee is down today because of knee jerk reaction by some banks which covered short positions. There is hardly any importer demand for dollars these days.”
“People are still waiting for clarity from Trump administration to assess the impact on the rupee.”
https://economynext.com/sri-lanka-r...ressure-on-trumps-tariff-hike-dealers-213201/
@IndrajithGamage එන්ට අනාවැකියක් කියන්ට
