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

Display results as :
 


Rechercher Advanced Search

Latest topics
» Will YOU VOTE for ME if I run for SL PRESIDENCY?
Today at 2:35 pm by Seyon

» Thread for News on Local and Foreign Politics
Today at 8:15 am by ruwan326

» Thread for News on CSE and SL Economy
Today at 6:28 am by nihal123

» Dividend Announcement
Today at 6:04 am by nihal123

» COMB.N0000 ( COMMERCIAL BANK OF CEYLON PLC )
Yesterday at 9:20 pm by pjrngroup

» Thread for News on International Markets
Yesterday at 7:56 am by The Invisible

» DIPD.N0000 (Dipped Products)
Yesterday at 7:18 am by The Invisible

» SAMP.N0000 (SAMPATH BANK PLC)
Yesterday at 7:16 am by The Invisible

» TAFL - Three Acre Farms
Yesterday at 7:14 am by The Invisible

» RCL - Royal Ceramics
Yesterday at 7:12 am by The Invisible

» HAYL.N0000 Hayleys PLC
Yesterday at 7:08 am by The Invisible

» How to trade Stock profitably?
Tue Nov 13, 2018 11:55 am by indramal

» What are investing methods in Sri Lanka?
Tue Nov 13, 2018 6:39 am by indramal

» අනං මනං! #/+?.<>
Mon Nov 12, 2018 7:57 pm by Yin-Yang

» Thread for General News Local/Foreign
Mon Nov 12, 2018 7:57 am by serene

» Anybody invest New York or Landon Stock Exchange?
Sat Nov 10, 2018 8:53 am by කිත්සිරි ද සිල්වා

» JKH.N0000
Fri Nov 09, 2018 10:49 am by ruwan326

» HAYC - Haycarb
Fri Nov 09, 2018 10:30 am by The Invisible

» WATA - Watawala
Fri Nov 09, 2018 10:22 am by The Invisible

» AAIC.N0000
Fri Nov 09, 2018 10:10 am by The Invisible

» Asian markets rally as investors see positive in US gridlock
Fri Nov 09, 2018 8:02 am by serene

» CSE RISE , RIDING ETHICALLY
Wed Nov 07, 2018 5:53 am by pjrngroup

» Constitutional Crisis – close to $ 100mn flees stock/bond markets last week
Tue Nov 06, 2018 6:38 pm by serene

» HHL.N0000 ( Hemas Holdings PLC)
Tue Nov 06, 2018 8:43 am by The Invisible

» Weldone Serene for 4000 + posts
Tue Nov 06, 2018 7:44 am by serene

» Real Estate Market in Sri Lanka- A booming Industry or a Bubble?
Tue Nov 06, 2018 7:36 am by serene

» Asiri Hospitals PLC - ASIR
Mon Nov 05, 2018 11:58 am by The Invisible

» Flying is the Safest mode of Transport
Sat Nov 03, 2018 8:44 am by කිත්සිරි ද සිල්වා

» REXP.N0000 ( RICHARD PIERIS EXPORTS PLC)
Fri Nov 02, 2018 7:45 pm by Brave Heart

» What MOTTOs/PRINCIPLEs do YOU follow in LIFE ?
Thu Nov 01, 2018 4:14 pm by Seyon

» LDEV - Lankem Developments
Thu Nov 01, 2018 2:23 pm by The Invisible

» NDB.N0000 (NATIONAL DEVELOPMENT BANK PLC)
Thu Nov 01, 2018 12:43 pm by The Invisible

» MTD Walkers (KAPI)
Thu Nov 01, 2018 11:54 am by The Invisible

» SERV - The Kingsbury
Thu Nov 01, 2018 10:12 am by The Invisible

» LFIN - LB Finance
Thu Nov 01, 2018 10:03 am by The Invisible

» PABC.N0000 (Pan Asia Banking Corporation PLC)
Thu Nov 01, 2018 9:56 am by The Invisible

» Sri Lanka jumps 11 places to 100th rank in World Bank’s Doing Business index
Thu Nov 01, 2018 9:52 am by The Invisible

» Banking Sector
Thu Nov 01, 2018 9:50 am by The Invisible

» All Share index crosses 6,000 points
Thu Nov 01, 2018 8:20 am by Brave Heart

» Asian Hotels and Properties September net down 48-pct
Thu Nov 01, 2018 8:17 am by Brave Heart

» Sri Lanka rupee weakens; stocks rally slows
Thu Nov 01, 2018 8:13 am by Brave Heart

» TJL.N0000 (Textured Jersey Lanka PLC.)
Wed Oct 31, 2018 7:27 pm by PANTOMATH

» Whats ailing Sri Lanka ? Why we are what we are!
Wed Oct 31, 2018 6:07 pm by Ethical Trader

» Sri Lankan rivals tempt defectors to swing crisis
Wed Oct 31, 2018 9:41 am by The Invisible

» Sri Lanka’s Piramal Glass in Sept quarter loss as costs rise
Wed Oct 31, 2018 9:36 am by The Invisible

» Sri Lanka President could dissolve parliament if interim budget is defeated: Wijedasa
Wed Oct 31, 2018 9:34 am by The Invisible

» Sri Lanka political crisis hikes debt rollover risk: Fitch
Wed Oct 31, 2018 9:31 am by The Invisible

» Sri Lankan political standoff could threaten reforms: S&P Ratings
Wed Oct 31, 2018 9:29 am by The Invisible

» Giant pro-democracy rally in Sri Lanka capital
Wed Oct 31, 2018 9:27 am by The Invisible

» Postponing reforms will make Sri Lanka lag behind peers, central bank warns
Wed Oct 31, 2018 9:22 am by The Invisible

November 2018
SunMonTueWedThuFriSat
    123
45678910
11121314151617
18192021222324
252627282930 

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 : 671
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 : 4059
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 : 671
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