Sri Lanka printed lots of electronic and paper money during earlier budget deficit. Sri Lanka should mop up Rupee in open market with issued US Dollar Treasury Bonds in order to Strengthen Sri Lankan Rupees. This will reduce pressure on Sri Lankan Rupees. By Hording Dollars in Central Bank Sri Lankan Rupees likely to depreciate.
The policy of not giving Dollars to traders and Hording of US Dollars is likely to Backfire on Central Bank itself. Sri Lanka does not need to hold US Dollar more than three months of imports. Reserves can be gradually increased with a rising Sri Lankan Rupees.
Lower Rate of Sri Lankan Rupees only benifits exporters only. It makes the government, poor people of this country poorer. Importers too suffer. High cost of Crude oil imports will increase cost of living for every body. Transpotation and Electricity, Water ,Food items, Consumer goods all dependent on cost of Oil.
Greedy Exporters are hording US Dollar in order to put preasure on Sri Lankan Rupees to depreciate.
Sri Lanka badly needs foreign currency swap with Federal Reserve bank of US.
The policy of not giving Dollars to traders and Hording of US Dollars is likely to Backfire on Central Bank itself. Sri Lanka does not need to hold US Dollar more than three months of imports. Reserves can be gradually increased with a rising Sri Lankan Rupees.
Lower Rate of Sri Lankan Rupees only benifits exporters only. It makes the government, poor people of this country poorer. Importers too suffer. High cost of Crude oil imports will increase cost of living for every body. Transpotation and Electricity, Water ,Food items, Consumer goods all dependent on cost of Oil.
Greedy Exporters are hording US Dollar in order to put preasure on Sri Lankan Rupees to depreciate.
Sri Lanka badly needs foreign currency swap with Federal Reserve bank of US.
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