Frontiers: Managing Flows

The report analyzes currency dynamics in Sri Lanka and Uzbekistan, suggesting that LKR weakness is sufficient for energy costs while UZS will be supported by debt issuance.

Key Takeaways

• 1.The Sri Lankan Rupee (LKR) weakness YTD is considered a sufficient adjustment to current energy import costs.
• 2.The Central Bank of Sri Lanka (CBSL) is expected to hike policy rates by 100bp to combat inflation and support the currency.
• 3.Uzbekistan's currency (UZS) is likely to receive support from renewed external debt issuance and gold exports.

Table of Contents

• Frontiers in focus: managing flows
• LKR: adjustment seems sufficient
• Current account pressures to ease from May
• CBSL to the rescue
• Up to 100bp rate hike due next week
• USD GDP: inflation vs LKR
• UZS: mind the renewed portfolio inflows
• Gold exports are back – have reserves hit a ceiling?
• Easing on hold for now

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial