Rupee stabilises against US $
View(s):The Sri Lanka rupee was stable against the US currency this week being pegged at 179.60 per dollar on Friday. This was however a slightly higher rate for the dollar than Monday’s close of Rs. 178.60.
Dealers said there was a shortage of liquidity in the market and noted that the Central Bank move on Friday to reduce interest rates is meant to improve liquidity.
On Friday, the Central Bank announced that the Monetary Board was of the view that some policy intervention by the banking regulator to address the large and persistent liquidity deficit in the domestic money market is warranted.
“Accordingly, the Monetary Board decided to reduce the Statutory Reserve Ratio (SRR) applicable on all rupee deposit liabilities of commercial banks by 1 per cent to 5 per cent from the current level of 6 per cent with effect from the next reserve maintenance period commencing March 1,” it said.