Notable
True undated securities may be too ambitions but a start could be made with 5 to 10 year securities
Sri Lanka does not actually have a single policy rate like the Bank of England now
By the 1950s academics in US and UK had rejected economics of Hume, Ricardo and Smith, becoming branches without a tree
There are several red flags and one green one
Unless nipped in the bud, currency depreciation will lead to political instability
The priviledge of 'Government Acceptance' should be ended to stop the next default
Countries where inflationists cannot engage in macro-economic policy with money printing have low debt
It is a shame that country with a 20-pct savings rate cannot maintain reserves and has to depreciate the currency
If parliament rubber stamps a 4-6-pct inflation target, a second default is more certain
The new central bank goal and objective are a personification of the impossible trinity of monetary policy objectives
Reserves can be collected by impoverishing the poor, or by taking in their savings
Sri Lanka rupee appreciation explained
Mass sovereign default episode in the 1980s also followed a decade of bad money from the Fed
Converted budget support loans and conflicting PCs can lead to new external instability, discredit and derail reforms
The new law appears to have brought back policy conflicts dropped in a previous amendment
The inclusion of extensive macro-prudential laws is an admission that money is bad
| Latest | Last | |
|---|---|---|
| US Dollar | 331.7485 | 330.8514 |
| UK Pound | 443.7468 | 438.3450 |
| Euro | 372.5204 | 371.0168 |
| Yen | 2.0969 | 2.0916 |
| Aus Dollar | 233.0533 | 231.1659 |
| Latest | Last | |
|---|---|---|
| Indian Rupee | 3.4948 | 3.4202 |
| Korean Won | 0.2499 | 0.2479 |
| Oman Rial | 861.6397 | 859.3320 |
| Saudi Riyal | 88.4403 | 88.0955 |
| UAE Dirham | 90.3209 | 90.0766 |
| pts | % | |
|---|---|---|
| S&P SL20 | 5,656.91 | -0.43% |
| CSE All Share | 19,927.30 | -0.28% |
| Turnover Rs | 1457.79 million | 1193.67 million |
| Latest | Last | |
|---|---|---|
| 3-m bill | 7.61 | 7.84 |
| 6-m bill | 7.91 | 8.26 |
| 12-m bill | 8.23 | 8.3 |
| 3-yr bond | 9.24 | 9.25 |
| 5-yr bond | 9.82 | 9.56 |
| 8-yr bond | 10.50 | 10.48 |
| today | yesterday | |
|---|---|---|
| Overnight Money | 7.70 | 7.69 |
| Gilt Repo | 7.74 | 7.72 |
| I-m SLIBOR | - | - |
A strike planned on March 01
IMF should stop the promotion of impossible trinity regimes with spurious claims to monetary policy independence
Call from Goh, Shenoy to provide sound money discarded in favour of depreciation, flexible regimes
Care should be taken to make sure that excess liquidity does not re-emerge from fictitious capital
In 1968 with Bretton Woods soft-peg hanging on a thread, advantages of currency board had become clear
That BOP deficits and reserve losses are caused by money printing is now hidden and victims are blamed
Fear of a DDR/IFR event drive rates even higher
Indian billion dollar credit line also works Undiyal fashion
It is through open market operations that money is printed to mis-target interest rates
The absolute discretion to print money through flexible inflation targeting cum output gap targeting has to be blocked
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