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Sri Lanka’s central bank buys New York property

Nov 09, 2011 (LBO) - Sri Lanka's central bank has bought property in New York as part of a move to establish overseas offices where the foreign reserves are invested, Governor Nivard Cabraal said.
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"We have bought office space, we will be having some our operations in other countries," he said.

"Initially we will give it to (diplomatic) missions.


"

The property is near New York's United Nations building. Cabraal said property prices were also down at the moment.

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He said the Central Bank has billions of dollars in foreign reserves and research and investment offices would be needed in the future.

Sri Lanka has a peg with the US dollar, and a bulk of the country's foreign reserves has to be held in dollar assets, usually liquid US government bonds. Investments denominated in other currencies can result in exchange losses.

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