Broad money supply expands by 9.8 %, rupee maintains appreciating trend | Daily News

Broad money supply expands by 9.8 %, rupee maintains appreciating trend

During the year upto May 10, 2019 the Sri Lanka rupee appreciated against the US dollar(4.1percent).Given the cross currency exchange rate movements, the Sri Lanka rupee appreciated against the pound sterling (1.5percent), Japanese yen(3.7percent),the euro(6.0percent)and the Indian rupee(4.2percent)during this period.

Broad money (M2b) expanded by 9.8 %, on a year-on-year basis, in March 2019.

Net Credit to the Government from the banking system showed a decrease of Rs. 58.9 billion in March 2019. Credit to public corporations recorded a decrease of Rs. 12.2 billion in March 2019. Credit extended to the private sector increased by Rs. 23.1 billion in March 2019.

The total outstanding market liquidity was a surplus of Rs. 61.537 billion by end of the week, compared to a surplus of Rs.44.61 billion by the end of last week. The reserve money decreased compared to the previous week mainly due to the decrease in currency in circulation and deposits held by the commercial banks.

By May 10, 2019, the All Share Price Index(ASPI)decreased by 2.04% to 5,327.7 points and the S&P SL 20 Index decreased by 3.78% to 2,519.1 points, compared to the previous week. The first quarter of 2019, domestic tea production reported a decline mainly due to the effect of low auction prices and trade union action. Production of rubber increased with the support of favourable weather conditions while coconut production increased significantly continuing its growth momentum.

During the period, crude oil prices followed a mixed performance. Price decline was mainly supported by the announcement of U.S. president to increase tariffs on Chinese goods in this week. However, oil prices increased due to the renewed optimism for U.S. - China trade deal. Overall, Brent and WTI prices rose by US$ 2 per barrel and US$ 2.1 per barrel within the period.

Source CBSL Weekly Economic Indicators


 

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