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Message: <blockquote data-quote="monson" data-source="post: 28645164" data-attributes="member: 30005">Tuesday February 28, 2023 4:49 pmECONOMYNEXT – Sri Lanka’s spot market has become active after the central bank reduced a surrender requirement leaving more dollars to be used in the banking system and a trading band was also widened.The rupee opened around 360/365 to the US dollar and business was done around 356 in intra-day trading, dealers said.The spot US dollar closed still wide around 350/357 to the dollar.On Monday several banks sold excess dollars to the central bank at a little higher levels, dealer said.Sri Lanka’s rupee collapsed in March 2023 and the float failed due to a surrender rule where banks were asked to sell 50 percent of their export receipts and the central bank creating new money.A float involves suspending all convertibility. A surrender rule is a ‘strong side’ convertibility undertaking which weakens a peg.Sri Lanka’s spot market died almost two years ago as the central bank printed large volume of money to mis-target rates and create unsustainable outflows.However from April 2022 rates were hiked and money printing was gradually stopped. Since then a peg or around 360/370 to the US dollar was maintained with the surrender rule preventing the currency from appreciating despite private credit becoming negative. (Colombo/Feb29/2023)- <a href="https://economynext.com/sri-lanka-spot-market-resumes-rupee-closes-stronger-at-rs350-357-to-dollar-113520/" target="_blank">https://economynext.com/sri-lanka-spot-market-resumes-rupee-closes-stronger-at-rs350-357-to-dollar-113520/</a>HNB අද. ඊයේ තිබ්බේ buying 359.50 <img src="https://i.imgur.com/Gt1wR8F.jpg" alt="" class="fr-fic fr-dii fr-draggable " style="" /></blockquote>

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