KARACHI: Foreign exchange reserves rose to a record $17.3 billion in the week ended January 22, up from $17.28 billion the previous week, the central bank said on Thursday.
Reserves held by the State Bank of Pakistan (SBP) rose to $13.74 billion from $13.66 billion in the week ended January 22 while those held by commercial banks fell to $3.56 billion from $3.62 billion, said the SBP.
Analysts believe the rise in remittances from overseas Pakistanis has caused the reserves to jump. The reserves were also boosted this month by more than $633 million released by the US for the military and logistical support in the fight against terror.
Rupee firms
The rupee ended firmer at 85.77/83 to the dollar compared with Wednesday’s close of 85.82/87 amid a lack of import payments but dealers expect pressure on the local unit because of rising international oil prices.
In the money market, overnight rates rose to the top level of 13.90 per cent compared with the previous day’s close between 12.75 and 13 per cent amid tight liquidity in the interbank market.
Published in The Express Tribune, January 28th, 2011.
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