Exchange Rate Of Sri Lankan Rupee Vs Us Dollar
The exchange rate of Sri Lankan rupee vs US dollar has been fluctuating for the past few years. It is important to understand the exchange rate and its impact on the economy of Sri Lanka. This article will provide a comprehensive analysis of the exchange rate of Sri Lankan rupee vs US dollar.
What is Exchange Rate?
Exchange rate is the value of one currency in relation to another currency. It is the rate at which one currency can be exchanged for another. Exchange rate plays a vital role in the economy of a country as it affects the international trade, investment and tourism.
Factors Affecting Exchange Rate
There are several factors that affect the exchange rate of a currency. The major factors are:
- Economic indicators like inflation, interest rates, GDP and unemployment rate
- Political stability and government policies
- International trade and investment
- Market speculation and demand for a currency
Sri Lankan Rupee Vs US Dollar Exchange Rate
The exchange rate of Sri Lankan rupee vs US dollar has been fluctuating for the past few years. In 2016, the exchange rate was 148.50 rupees for one US dollar. In 2017, it increased to 153.40 rupees for one US dollar. In 2018, it further increased to 182.75 rupees for one US dollar. In 2019, it decreased to 180.50 rupees for one US dollar. As of August 2021, the exchange rate is approximately 200 rupees for one US dollar.
Impact of Exchange Rate on Sri Lankan Economy
The exchange rate of Sri Lankan rupee vs US dollar has a significant impact on the economy of Sri Lanka. A weaker exchange rate of Sri Lankan rupee means that importing goods becomes expensive and it increases the cost of living. On the other hand, a stronger exchange rate of Sri Lankan rupee means that exporting goods becomes expensive and it reduces the competitiveness of Sri Lankan products in the international market.
Measures Taken by Sri Lankan Government to Stabilize the Exchange Rate
The Sri Lankan government has taken several measures to stabilize the exchange rate of Sri Lankan rupee vs US dollar. They are:
- Increasing the interest rates to attract foreign investments
- Reducing the imports and promoting local production to reduce the demand for US dollars
- Encouraging the exports to increase the supply of US dollars
- Controlling the inflation rate to maintain the stability of the currency
Conclusion
The exchange rate of Sri Lankan rupee vs US dollar has a significant impact on the economy of Sri Lanka. The Sri Lankan government has taken several measures to stabilize the exchange rate and maintain the stability of the currency. It is important for the policymakers and the general public to understand the exchange rate and its impact on the economy.