chennaiguuy
Senior Member
Joined: Apr 2008
Posts: 22584
Member Profile 19 Jun 2009 04:30:53 GMT Report for Abuse
Central Bank of Srilanka is a Culprit in creating More Harshad Mehtas & Ketan Parekhs by encouraging Speculative transactions in Stock Market !
Our LNP Modayans are Jumping up as & when the Stock prices go thru the roof & the Bubble will burst sooner !
:-))
The Central Bank is using a technique at its disposal to help build the reserves, protect exporters from a sharp rupee appreciation and allow banks to engage in speculative trading and make some gains.
The Central Bank recently relaxed Net Trading Positions of commercial banks allowing more speculative trading in a move dealers said gave the foreign exchange market confidence about the position of the country s foreign currency reserves.
Reserves are down to US$ 830 million and the Central Bank obviously wants to boost its reserves. By keeping the exchange rate stable and by increasing the overnight foreign currency trading positions the Central Bank is hoping to boost its reserves because commercial banks will be more inclined to sell their dollars than to hold on to them.