Crisis in Money Supply in Ceylon

Crisis in Money Supply in Ceylon

There is a crisis in money supply in Ceylon.

I am not an economist but a normal consumerist. 

I see the problem as simple a user and I want to know whether to buy dollars or sell dollars, at a particular point of time, is prudent or not.

In my case pound rate matters.

Dollar is 292 Rupees and it used to be 330 and I am losing 40 Rupees per dollar, if I use dollar notes.

Pound is 378 Rupees it used to be 420 losing 40 Rupees per pound.

Pound is 1.3 dollars equivalent.

In that sense, I lose less with pounds.

 It is obvious dollar is depreciating, all due to Ukraine War and the debt in trillions.

Coming back to our problem;

There are many reasons for printing money including deformed notes.

Central Bank does not store notes and legally it cannot hoard.

If the bank does hoard, it affects the currency load in circulation.

The usual practice is for the Fiance Minister to sign (one) a note (master copy) as soon as he takes the Auth.

For some unknown reason he has not done it yet. 

I can remember how Ravi Karunaratne was very happy to sign a note when he became the FM. 

He is a charted account (I believe) not an economist.

It is the season and the Christmas and New Year coming, it is a simple practice to buy alcohol, sweets and if anything left buy gifts (Come JVP/NPP, greeting cards printers would have a rough time, this year).

Ranil already has increased the postage and SMS (that is the first thing he did) rate and telephone calls are exorbitant and the emails, nobody answers.

I stopped sending SMS jokes!

There going to be currently crisis, since people do not have cash in their hands to role in. 

 

The kitty is already empty.

Unless Central Bank prints money before the end of the year, come April New Year 2025, there going to be a real cash crisis impending.

Whoever who is advising the President has no understanding in how the Central Bank operates.

 

Even though, it is an independent institution it has to follow the protocol.

Next tranche of IMF won't come in time for the April New Year, 2025, whoever who comes to power.

My estimate is a "Hung Parliament" in any case. 

 

That itself makes some delay in appointing the proper personnel.

In management, proactive action works wonders not of procrastination.