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Regional Currency Depreciation Comparison
Comparison of currency depreciation against the USD in regional economies.
Primary Sources
JAAF says rupee depreciation driven by global pressures, not domestic ...
The Joint Apparel Association Forum (JAAF) says the recent depreciation of the Sri Lankan Rupee is due to global factors, not domestic economic decline.These include Middle East tensions, rising fuel prices and higher shipping costs, according to JAAF.The association said currency depreciation is a regional trend, with India, Nepal and Indonesia also recording stronger declines against the US dollar.JAAF added that a weaker rupee can support export competitiveness and improve foreign exchange earnings if managed with stability.The statement also noted that Sri Lanka’s exchange rate movement should not be used alone to assess economic performance.
JAAF says rupee depreciation driven by global pressures, not ...
9 hours ago ... JAAF says rupee depreciation driven by global pressures, not economic decline Read more: https://adaderanaenglish.lk/news/cmpdv5p6v0002356qd9wtq9j2...
JAAF says rupee depreciation driven by global pressures ... - Adaderana
The Joint Apparel Association Forum (JAAF) said the recent depreciation of the Sri Lankan rupee must be viewed in the context of wider global pressures, including the conflict in the Middle East, rising global fuel prices and increasing shipping costs. JAAF noted that a weaker rupee should not be interpreted as a sign that Sri Lanka’s economy is underperforming, according to a statement. This position is also consistent with recent comments by Central Bank Governor Dr. Nandalal Weerasinghe, who noted that exchange rate movement alone cannot be used as the sole measure of the country’s economic health, as currency depreciation has a number of positive implications. The Central Bank Governor has also pointed out that Sri Lanka is not facing this pressure in isolation. In recent weeks, the Indian rupee has faced renewed depreciation pressures driven by higher oil prices, persistent capital outflows, and a stronger US dollar. While the Sri Lankan rupee has depreciated by 4.8% against the US dollar, the Indian rupee has depreciated by 6.4%, the Nepalese rupee by 6.2%, and the Indonesian rupiah by 5.2%, the statement said. This shows that currency depreciation is currently a global and regional phenomenon, unlike in 2022, when Sri Lanka’s exchange rate pressure was driven by a domestic economic crisis. “The current movement of the rupee must be understood within the correct context. This is not a Sri Lanka-specific situation. Global factors, including instability in the Middle East, higher fuel costs and rising shipping costs, are placing pressure on currencies across emerging and developed economies alike. India and several other countries are also seeing their currencies depreciate, which shows that this is part of a wider global adjustment,” said Felix Fernando, Chairman of JAAF. He added that a weaker rupee, if managed with stability and discipline as is currently being done, can in fact support export competitiveness and strengthen Sri Lanka’s external position. “A weaker rupee does not mean the economy is failing. For export sectors such as apparel, a more competitive exchange rate will make exports more competitive, thereby helping protect jobs, strengthen foreign exchange earnings and support the wider economy. At a time when Sri Lanka needs to build reserves and increase foreign currency inflows, exporters have an important role to play,” Fernando said. JAAF said the country’s focus should be on maintaining confidence, avoiding speculation and ...
JAAF asserts that fluctuations in the rupee are driven by international ...
The Joint Apparel Association Forum (JAAF) has stated that the recent decline in the value of the Sri Lankan rupee should be understood within the broader context of global challenges, including ongoing conflicts in the Middle East, escalating global fuel prices, and rising shipping expenses. JAAF emphasized that the depreciation of the rupee should not be misconstrued as an indicator of economic decline in Sri Lanka. This viewpoint aligns with the observations made by Central Bank Governor Dr. Nandalal Weerasinghe, who remarked that fluctuations in the exchange rate should not be the sole determinant of the country’s economic performance, as currency depreciation can also bring about several beneficial effects. Additionally, the Central Bank Governor highlighted that Sri Lanka is not experiencing these pressures in a vacuum. Recently, the Indian rupee has also faced significant depreciation due to soaring oil prices, ongoing capital outflows, and a stronger US dollar. While the Sri Lankan rupee has seen a 4.8% drop against the US dollar, the Indian rupee has depreciated by 6.4%, the Nepalese rupee by 6.2%, and the Indonesian rupiah by 5.2%. This trend indicates that currency depreciation is currently a widespread phenomenon across both global and regional landscapes, contrasting with 2022 when Sri Lanka’s currency issues were largely attributed to a domestic economic crisis. Felix Fernando, Chairman of JAAF, stated, “The recent fluctuation of the rupee needs to be viewed in the right context. This is not an issue unique to Sri Lanka. Global factors, such as instability in the Middle East, increased fuel costs, and rising shipping rates, are exerting pressure on currencies in both emerging and developed markets. Countries like India and others are also witnessing similar currency depreciation, illustrating that this is part of a broader global adjustment.” Fernando further noted that if a weaker rupee is managed with stability and discipline, as is currently the case, it could enhance export competitiveness and bolster Sri Lanka’s external economic position. “A depreciating rupee does not signify an ailing economy. For export-driven sectors like apparel, a more favorable exchange rate can increase competitiveness, helping to safeguard jobs, enhance foreign exchange earnings, and support the overall economy. As Sri Lanka seeks to build reserves and attract more foreign currency, exporters will play a vital role,” Fernando added. JAAF concluded that the nati...
