Sri Lanka’s Central Bank today said that the exchange rate will stabilize below Rs. 125 per US dollar despite claims by some parties that the exchange rate will stabilize at Rs. 132 per US dollar.
Assistant Governor of the Central Bank K.D. Ranasinghe speaking to News360.lk said, the declining demand for imports, declining global oil prices and increased foreign inflows coming into the country are some factors which will help the cause.
Sri Lanka’s rupee has depreciated by 16.3% against the dollar during the first five months of this year as against an appreciation of 0.3% during the same period of last year.
At the start of the year the dollar was trading around Rs. 114, but subsequently saw the dollar exchange rate rising up to Rs. 132.
Today morning the dollar rate was hovering around Rs. 132.50.
Overall, during last year the local rupee appreciated by 2.66% which also included the 3% devaluation of the local currency effected by the Monetary Authority.
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