Written by Nathasha De Alwis
18 Jun, 2019 | 10:15 pm
Foreign exchange reserves are the foreign currencies held by a country’s central bank. Among the several reasons why banks hold reserves the most important reason is to manage the value of their currencies. However, due to Sri Lanka’s deep abyss of debt, the government is forced to release these funds to repay the never-ending debt obligations.
It further reveals a decline in net excess liquidity by Rs 12,569 million to Rs 35,915 million. In the three market days to yesterday the country’s foreign reserves bled by $ 351.93 million.
While a decline in foreign reserves of a country will put pressure on the domestic currency to depreciate, this will, in turn, affect the prices of imports to increase. This will no doubt affect the majority of Sri Lanka by the increased cost of living.
19 Jun, 2019 | 07:49 PM
05 Jul, 2018 | 09:16 PM
Are you interested in advertising on our website or video channel
Please contact us at [email protected]