(Bloomberg) -- Sri Lanka’s central bank will take steps to discourage speculation and volatility in the foreign exchange market, as it seeks to restore stability in a nation gripped by its worst economic crisis since independence.
The monetary authority plans to issue guidance to banks on movement of the exchange rate, including a daily trading band for the rupee-dollar trade, Governor Nandalal Weerasinghe said in a briefing Wednesday. The operating instructions will be issued on Thursday, he said.
The measures are aimed at tightening restrictions on foreign exchange trading.
Sri Lanka’s 7.55% 2030 bond fell to a record low to trade at 38.5 cents on the dollar as Weerasinghe speaks. The rupee fell 0.1% to 365.45 per dollar on Wednesday.
©2022 Bloomberg L.P.
Advertisement