ECONOMYNEXT – Sri Lanka’s rupee traded at 367 to the US dollar in the interbank market Friday market participants said, while banks were quoting 360 for telegraphic transfers for small transactions.

Some importers said they were getting dollars at higher rates.

Sri Lanka is facing the worst currency crisis in its history after two years of money printing to keep rates down.

In order to keep an exchange rate stable, a central bank has to be subject to strict rules and its ability to print money through open market operations curtailed.

The central bank on Friday said the government will soon issue a regulation banning open account imports to reduce Undiyal/Hawala premiums.

This week the kerb market ended around 392.50/395.00 to the US dollar.

People pay high premiums to get money out due to exchange controls and lack of dollars in the formal banking system due to money printing. (Colombo/April29/2022)