Chinese swap becomes usable when reserves reach US $ 4.2bn: CB chief

The US $ 1.4 billion equivalent yuan swap with the People’s Bank of China will become usable when Sri Lanka’s foreign reserves reach about US $ 4.2 billion, the Central Bank Governor Dr.Nandalal Weerasinghe said.

“That facility will become usable when reserves reach three months of imports, which is roughly about US $ 4.2 billion,” Dr.Weerasinghe told a virtual investor summit organized by CAL, this morning.

Sri Lanka currently has US $3.7 billion in foreign reserves, including a US $1.4 billion Chinese swap. The usable reserves are around US $2.3 billion.

Dr. Weerasinghe expressed confidence that Sri Lanka will outperform the foreign reserves targets set in the IMF programme following the completion of the debt restructuring exercise and the expected increase in inflows from remittances, tourism earnings, exports, credit, and concessional loans from multilateral lenders.