You can only have a foreign exchange shortage if you’re trying to fix the price of that foreign exchange. Which does mean that we are more qualified to run Sri Lanka than that Government is, but unfortunately that’s not how international affairs work out. Sri Lanka is complaining about how the bond and debt ratings companies are making things more difficult. So, to use this example, people are not going to stop lending to Sri Lanka because S&P has changed the rating. It’s exactly the worry that people won’t lend more, to pay off the old borrowings, which makes Sri Lanka risky to lend to.

Source: Dhaka Tribune January 25, 2022 07:54 UTC