CB provides guidance on foreign reserves, liquidity management to Maldives Monetary Authority

The Central Bank of Sri Lanka ( CB) recently provided a Technical Assistance ( TA) programme to the Maldives Monetary Authority (MMA) aimed at developing foreign reserves management skills of the Maldivian Central Bank.

This programme helped to build MMA’s institutional capacity to formulate foreign reserves management policies and procedures and to manage its foreign reserves so as to maintain confidence in the external value of the Maldivian Rufiya. Two senior CB officials were associated with this TA.

The CB said in a statement that since the early 1980s it has gained skills, expertise and experience in globally accepted investment activities which had enabled it to diversify its own reserves and engage in successful reserve management operations.

“As a result, the CB has able to engage in foreign reserves management activities which have today gained wide recognition as it has been able to earn above average rates of return, during periods when the world interest rates have been at historic low levels,” the Bank said.

In order to assist the MMA to migrate towards market- based instruments of monetary policy and to provide support on monetary policy implementation and liquidity forecasting, senior officials of the CBSL also conducted programmes for selected officers of the MMA.