Sri Lanka central bank guidance peg down 1 rupee; CB raises rates by 100 bps | Sinhala News

Sri lanka News – A guidance peg announced by Sri Lanka’s central bank for interbank transactions dropped by one rupee to 360.82 against the US dollar on July 07 from the previous day’s 359.82, data showed on Thursday.

Sri Lanka commercial banks offered dollars for telegraphic transfers at rates between 366.79 and 370.00 for small transactions on July 07, steady from Wednesday, commercial bank data showed.

Banks offered to buy inward remittances at 356.50 -359.00 rupees, also steady from the previous day.

Sri Lanka’s 6-month Treasury bills was quoted at 28.75/29.25 percent, after the central bank raised the interest rate at which overnight money is printed for banks by 100 basis points to 15.5 percent

There are growing fears in the market that dollar bond holders will force a second hair cut on rupee.

Treasuries, who have suffered close to 50 percent hair cut on depreciation already and are paying higher inflated taxes to meet state spending, market participants said. (Colombo/July 07/2022)

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