Sri Lanka one week dollar forwards at 147.40/50 rupees
ECONOMYNEXT – Sri Lanka’s rupee was quoted at 147.40/50 to the US dollar in the one week forward market Thursday, with some selling by a state bank which usually acts for the monetary authority, dealers said.
The state bank was selling one week forward dollars around 147.30 rupees. In afternoon one week forwards were quoted around 147.40/50 rupees dealers said.
There is no spot trading in Sri Lanka due to moral suasion. Spot next, or settlement spot plus one day is also halted by central bank pressure.
The so-called ‘spot reference’ used to structure swaps and enter deals in to the official foreign exchange system was raised by 75 cents to 145.25 this week after heavy volatility in the one week market.
But the implied spot based on the one week forward rate and interest rate differentials is also about 147.40 or about 15 to 20 cents less than the one week price.
Banks also selling cash dollars around 147.30 levels. In money markets there was a liquidity shortage of around 28 billion rupees, indicative of dollar outflows, which is being filled on an overnight basis. (Colombo/June23/2016)