Jan-March crucial to money market
View(s):The January-March 2020 period will be crucial to the money market expecting fresh directions from the new Central Bank Governor Prof. W.D. Lakshman, dealers said. “This period is crucial in terms of interest rate policy and exchange rate policy particularly since Sri Lanka has foreign debt obligations which would be paid off from the current reserves of US$7.5 billion,” said one dealer.
The Sri Lanka rupee which was pegged at Rs.181.40 against the US dollar on Friday has appreciated by 0.7 per cent so far this year. With foreign remittances so far low this year and outflows of foreign investment from securities and equities markets, the money market is awaiting signals from the Central Bank as to how it would beef up stocks of foreign reserves, after outflows to pay off debt.