Forex: Reserves drop to $15.5b from $15.7b

KARACHI: Foreign exchange reserves dropped to $15.5422 billion in the week ending August 9 from $15.6925 billion held on July 27, the central bank said on Thursday. Reserves held by the State Bank of Pakistan (SBP) were $11.0888 billion, while those held by commercial banks were $4.4534 billion. Last week, the reserves witnessed a boost after the news that the SBP received $1.118 billion from the United States under the Coalition Support Fund (CSF). The CSF disbursement eased pressure on the Pakistani rupee and will help the country make payments to the tune of millions of dollars to the International Monetary Fund (IMF), analysts said. Although this money will be helpful mainly in future IMF repayments, its disbursement will also discourage speculations in money market. As Pakistan-US relationship is coming back on track, the market is hopeful about the releasing of funds under the Kerry Lugar Bill in the coming months.

Published in The Express Tribune, August 10^th, 2012.