The Investor Sentiment - Equity and investments forum for Sri Lankans
Search
 
 

Display results as :
 


Rechercher Advanced Search

Latest topics
» අනං මනං! #/+?.<>
Today at 8:40 pm by ruwan326

» Thread for News on CSE and SL Economy
Today at 8:26 pm by ruwan326

» MTD WALKERS - KAPI
Today at 5:18 pm by PANTOMATH

» REXP.N0000 ( RICHARD PIERIS EXPORTS PLC)
Today at 11:51 am by yellow knife

» AMF.N0000
Today at 11:23 am by serene

» இனிய பொங்கல்
Yesterday at 9:15 pm by nihal123

» DIPD.N0000 (Dipped Products)
Yesterday at 8:18 pm by PANTOMATH

» HUNA.N0000
Mon Jan 14, 2019 5:29 pm by Ethical Trader

» Blessing in Disguise!! It's high time Brothers!!
Sun Jan 13, 2019 11:35 am by serene

» Thread for News on Local and Foreign Politics
Sat Jan 12, 2019 8:26 am by ruwan326

» LLUB.N0000 (CHEVRON LUBRICANTS LANKA PLC)
Thu Jan 10, 2019 8:45 pm by PANTOMATH

» කෝටි 4620 ක බැඳුම්කර නීතියට පිටින් ශ‍්‍රී ලංකන්ට දීලා
Mon Jan 07, 2019 6:18 pm by Ethical Trader

» JINS.N0000 ( Janashakthi Insurance PLC)
Sun Jan 06, 2019 1:12 pm by smallville

» Dividend Announcement
Sun Jan 06, 2019 4:28 am by serene

» Thread for News on International Markets
Fri Jan 04, 2019 9:40 am by The Invisible

» LDEV - Lankem Developments
Tue Jan 01, 2019 8:14 pm by ruwan326

» අවුරුද්ද අප කයි - අපි අවුරද්ද කමු (ජනවාරි පළමුවැනිදා)
Tue Jan 01, 2019 6:23 pm by malanp

» සැන්ඩි එපා!
Tue Jan 01, 2019 6:01 pm by serene

» අසිරිමත් සුබ නව වසරකට ආසිරි !
Tue Jan 01, 2019 5:08 pm by PANTOMATH

» SHL.N0000 (Softlogic Holdings PLC)
Mon Dec 31, 2018 6:04 pm by EBHRAHIMCANADA

»  වසරක කාලය තුළ ඉන්දියාවේ ඉහළම ආදායම් ලාභීන්
Mon Dec 31, 2018 2:47 am by nihal123

» අයදුමේ දී ඡායාරූප ‘ඇලවීම‘ අවශ්‍ය නැති ජාතික හැඳුනුම්පත ජනවාරි 01 සිට දිවයිනටම
Sun Dec 30, 2018 9:37 pm by lanka

» මැදපෙරදිගට පමණක්‘ පාස්පෝට් මින් ඉදිරියට නැහැ
Thu Dec 27, 2018 5:18 pm by Ethical Trader

» BFN - Orient Finance
Wed Dec 26, 2018 6:53 pm by serene

» Wishing Everyone a Happy Christmas !
Wed Dec 26, 2018 7:27 am by spw19721

» Happy Birthday
Tue Dec 25, 2018 11:13 am by sashimaal

» Trading Journal
Sat Dec 22, 2018 11:11 am by PANTOMATH

» COMB.N0000 ( COMMERCIAL BANK OF CEYLON PLC )
Fri Dec 21, 2018 9:41 am by The Invisible

» In the Meantime, Within Our Shores !
Thu Dec 20, 2018 9:44 am by කිත්සිරි ද සිල්වා

» AAIC.N0000
Thu Dec 20, 2018 7:44 am by serene

» Buy International English Language Testing System (IELTS) in jordan((WhatsApp:+237675967490))
Mon Dec 17, 2018 10:55 am by nihal123

» AINS - Arpico Insurance
Thu Dec 13, 2018 10:43 am by The Invisible

» CFVF - First Capital
Thu Dec 13, 2018 5:18 am by Ethical Trader

» Obituary Notice.
Wed Dec 12, 2018 11:18 am by sashimaal

» බඩගිනී
Tue Dec 11, 2018 9:20 am by Ethical Trader

»  Rajgama heroes !
Sun Dec 09, 2018 9:43 am by කිත්සිරි ද සිල්වා

» BOPL.N0000 (Bogawantalawa Tea Estates PLC)
Fri Dec 07, 2018 7:35 am by The Invisible

» Sri Lanka economic slowdown trims company profits, bank earnings grow
Thu Dec 06, 2018 3:04 pm by nihal123

» Better Than Bitcoin
Thu Dec 06, 2018 9:42 am by කිත්සිරි ද සිල්වා

» Hutchison, Etisalat complete mobile networks merger in Sri Lanka
Wed Dec 05, 2018 9:30 am by The Invisible

» Oil prices surge more than 5-pct
Mon Dec 03, 2018 1:53 pm by Ethical Trader

» CCS.N0000 ( Ceylon Cold Stores)
Mon Dec 03, 2018 10:03 am by The Invisible

» HAYC - Haycarb
Sun Dec 02, 2018 3:04 pm by xmart

» LGL Laugfs Gas
Fri Nov 30, 2018 9:43 am by The Invisible

» Oil prices gain as investors eye Fed relief on interest rates
Fri Nov 30, 2018 9:41 am by The Invisible

» ලැයිස්තුගත සමාගම් 8 ක් කොටස් ගනුදෙනු තහනම් වීමේ අවදානමක
Thu Nov 29, 2018 11:34 am by nihal123

» අපි තනිකර ලෝකය දිව යන්නේ
Thu Nov 29, 2018 11:32 am by කිත්සිරි ද සිල්වා

» NDB.N0000 (NATIONAL DEVELOPMENT BANK PLC)
Thu Nov 29, 2018 10:32 am by The Invisible

» Orient Finance PLC--(Share_Valuation_Report)
Thu Nov 29, 2018 7:17 am by yellow knife

» කිඹුලා
Mon Nov 26, 2018 7:20 am by Lalinda

January 2019
SunMonTueWedThuFriSat
  12345
6789101112
13141516171819
20212223242526
2728293031  

Calendar Calendar

Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

Sri Lanka to form coalition of countries with failing central banks

Go down

Sri Lanka to form coalition of countries with failing central banks

Post by The Invisible on Thu Oct 25, 2018 7:19 am

ECONOMYNEXT - Sri Lanka, faced with a falling currency due to monetary instability, which has undermined its free trade agenda, is planning host a summit of so-called Group of 24 countries among which are the worst central banks in the world.

The falling currency had forced the finance ministry partially suspend market pricing of oil, and also stop some imports, hurting tax revenues and also undermining a case for free trade.

"I'm hoping to have a summit here of similar countries facing similar issues," Finance Minister Mangala Samaraweera told reporters.

Samaraweera, who is the current chair of the G-24, said that he has written to the member countries to form a coalition and hold the summit.

"We want to form a coalition of countries with problems to sit around the table and discuss," Samaraweera said.

"This is not something that's going to go away in a month or two."

He said that with major oil supplier Saudi Arabia now on the receiving end of global criticism and possibly facing sanctions over the killing of journalist Jamal Khashoggi, global markets are likely to continue being unpredictable.

"The volatility in the financial scene is going to be around for a while, so we also have to look at ways and means of facing these challenges," Samaraweera said.

The G-24 is made up of countries that have some of the worst central banks in the world who are among the best customers of the International Monetary Fund as well as being top oil producers.

In region III (Asia) are India, Iran, Lebanon, Pakistan, Phillippines, Sri Lanka and Syria.

The Reserve Bank of India is one of the worst central banks of the region, which is dragging down every country that tries to import its monetary policy by pegging to it, though policy improved somewhat after a massive balance of payments crisis in 1991.

Before the RBI was nationalized however its rupee was the dollar of 'Asia and the Middle East' and Sri Lanka was hard pegged to it.

Pakistan is going into a new IMF program.

Iran has a hyper-inflating central bank despite having oil.

Philippines' central bank, created on the same lines as Sri Lanka by the same Fed official, once went bankrupt partly due to currency swaps.

In region II (Latin America) are Argentina, Mexico, Venezuela and also Ecuador.

Mexico, a colonial power bigger than the United States when money was gold, has been reduced to a migrant exporter with a bad central bank with a peso which collapses frequently, but which has improved in recent years.

The central bank of Venezuela, a country with massive oil reserves, is hyperinflating along with that of Iran.

Argentina has an archetypical sterilizing soft-peg. It is now going back to the IMF while chasing a 17 percent inflation target (no kidding) with a flexible exchange rate after creating a secondary market for its own sterilizing securities (seriously, no kidding) to keep rates down.

IMF has belatedly told Banco Central de la República Argentina it is not a very good idea and to sell them (Lebacs) down.

However one country Sri Lanka can learn a lesson from is Ecuador, an oil producer. It scrapped the the depreciating the Sucre in 2000 and dollarized, when its official rate fell to 25,000 from 4,000.

The country now has low interest rates and people are protected despite residual socialist policies. Large numbers of US citizens are retiring in the country where interest rates and inflation has converged with the developed world.

Sri Lanka can also learn some lessons from Qatar and Oman, from which the Central Bank of Sri Lanka is now negotiating currency swaps, analysts say.

Qatar dumped the Indian rupee with which it was dollarized as the Reserve Bank of India started printing money after it was nationalized and formed a currency-board-like central bank, with a fairly credible peg.

But naturally neither Qatar nor Oman can be in the G-24. (Colombo/Oct23/2018)
avatar
The Invisible

Posts : 877
Join date : 2016-11-28
Age : 39

Back to top Go down

Re: Sri Lanka to form coalition of countries with failing central banks

Post by serene on Thu Oct 25, 2018 7:25 am

Thanks Invi.
Good initiative.

serene
Top contributor
Top contributor

Posts : 4172
Join date : 2014-02-26

Back to top Go down

Re: Sri Lanka to form coalition of countries with failing central banks

Post by The Invisible on Thu Oct 25, 2018 7:40 am

Welcome serene. So its always better to gather with losers and fight back as a single force. They might have a chance.
avatar
The Invisible

Posts : 877
Join date : 2016-11-28
Age : 39

Back to top Go down

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum