Sri Lanka CB Chief unaware of threats to forex dealers

ECONOMYNEXT – Sri Lanka’s Central Bank Governor Indrajit Coomaraswamy said he was unaware that forex dealers had been threatened with police investigations for sharing market information with journalists reporting on currency movements.

"I’m not aware of that," Coomaraswamy said when asked whether dealers were intimidated by the Central Bank.

Journalists said dealers had been told that police will monitor their phone records to establish if they communicated with reporters, who will also be under investigation.

Reporters also asked whether any other official of the bank could have issued the threats.

"I doubt it," he said.
An association representing dealers issued a gag order during a previous balance of payment crisis, under pressure from authorities but there were no allegations of police investigations.

Sri Lanka’s rupee had been sliding with real effective exchange rate targeting and excess liquidity, leaving the current administration’s free trade agenda in tatters.

The rupee’s downward crawling soft-peg has fallen from 131 to 169 to the US dollar since the current administration came to power.  (Colombo/Oct03/2018)

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