Forex: Reserves fall 1% to $16.42b

Reserves held by the SBP fell to $11.92 billion from $11.97 billion a week earlier

KARACHI: Foreign exchange reserves fell by 1% to $16.42 billion in the week ending April 20, from $16.6 billion last week, central bank said on Thursday. Reserves held by the State Bank of Pakistan (SBP) fell to $11.92 billion from $11.97 billion a week earlier, while those held by commercial banks fell to $4.50 billion from $4.63 billion. Foreign exchange reserves hit a record $18.31 billion in July last year, boosted 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 exports and record remittances have also supported Pakistan’s reserves. Reserves have since been drained by debt repayments, including $399 million in the week ending Feb. 24 on an $8 billion International Monetary Fund loan. The next repayment is due by end of 2011/12 fiscal year.

Published in The Express Tribune, April 27^th, 2012.