Foreign exchange: Reserves ease to $17.03b

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

KARACHI:

Foreign exchange reserves fell to $17.03 billion in the week ended November 4 from $17.15 billion the previous week, the central bank reported on Thursday.

Reserves held by the central bank fell to $13.28 billion, compared with $13.41 billion in the previous week, while those held by commercial banks rose marginally to $3.75 billion, from $3.74 billion in the previous week, according to the State Bank of Pakistan. Foreign exchange reserves hit a record $18.31 billion in the week ending July 30, but have since eased due to debt repayments. The reserves were boosted in June by inflows of $411 million, including a $191.9 million loan from the World Bank, and a loan of $196.8 million from the Asian Development Bank.

Higher export proceeds and a record inflow of remittances have also helped foreign exchange reserves grow steadily. Remittances rose 25% to $3.3 billion in the first quarter of the 2010/11 fiscal year (July-June), compared with $2.65 billion in the same period last year, according to official data.

Published in The Express Tribune, November 11^th,  2011.