Sri Lanka’s cabinet of ministers had approved swaps of up to two years to cover foreign exchange risks of investors in rupee bonds. During the last five years, foreigners were pulling out money from the capital market, especially on LKR bonds. Long positions on many Asian currencies have sharply raised. Reuter report says "Long bets on the Chinese yuan, South Korea’s won, Singapore’s dollar, and the Malaysian ringgit were all raised to their highest since early 2018." But several EM currencies (Argentina, Russia, Brazel, South Africa) are having tough time.
Sri Lanka to safeguard foreigners from FX risk up to 2 years
Exchange RateSep 23, 2020