Forex reserves ease to $16.7b

Reserves dropped since reaching record high in July due to debt repayments.

KARACHI: Foreign exchange reserves fell marginally to $16.66 billion in the week ending December 16, compared with $16.69 billion in the previous week, the central bank said on Thursday.

Reserves held by the State Bank of Pakistan (SBP) fell to $12.76 billion compared with $12.81 billion the previous week, while those held by commercial banks rose to $3.90 billion compared with $3.88 billion from the previous week.

Foreign exchange reserves hit a record $18.31 billion in the week ending July 30, but have since eased due to debt repayments.

Reserves were boosted in June by inflows of $411 million, including a $191.9 million loan from the World Bank, and a $196.8 million loan from the Asian Development Bank.

Higher export proceeds and a record inflow of remittances have also helped support Pakistan’s foreign exchange reserves.

Remittances rose 18.33% to $5.24 billion in the first five months of the fiscal year (July-June), compared with $4.43 billion in the same period a year earlier, according to official data.

However, they fell slightly to $923 million in November, compared with $926.89 million received in November last year.

Islamabad must start repaying an $8 billion International Monetary Fund loan in early 2012.

Published in The Express Tribune, December 23^rd, 2011.