Inflation ( CCPI)0.9% (May 2024)
GDP5.3% (1Q 2024)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.39%
12M T-Bill Rate9.90%
2Y T-Bond Rate10.10%/ 10.20%
4Y T-Bond Rate11.10% / 11.25%
USD/LKR304/305
Reserves $5.4Bn (May 2024)
Cum. Trade Deficit $1,229 Mn (March 2024 cumulative)
Cum. Fiscal DeficitLKR 2,320 Bn (Dec 2023)

US credit rating at risk, investors are nervous

InternationalMay 25, 2023
US credit rating at risk, investors are nervous

The home of the "preeminent world's reserve currency" is now on "rating watch negative" as a result of the increased "political partisanship that is hindering reaching a resolution to raise or suspend the debt limit" despite the fast approaching ‘x date', which is when the US Treasury exhausts its cash position and capacity for extraordinary measures.

Fitch noted the US reached its USD 31.4trn debt limit on 19 January 2023, since which date the US Treasury had taken extraordinary measures to avoid breaching the ceiling, which could be exhausted as early as 1 June - the date repeatedly cited by US Treasury secretary Janet Yellen. (Reported by Investment Week UK)

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