Going down: Debt servicing reduces forex reserves
Data reveals reserves down to $4.42 billion.
$9.14b is the total liquid foreign reserves held by the country, including banks and the SBP. PHOTO: FILE
KARACHI:
Foreign exchange reserves held by the State Bank of Pakistan (SBP) recorded a week-on-week decrease of 7.93% on March 21, according to data released by the SBP on Thursday.
The central bank’s foreign exchange reserves decreased $382 million to $4.42 billion during the week.
The decrease in the central bank’s reserves is due to external debt servicing of $248 million, inclusive of $57 million repayment to the International Monetary Fund (IMF), and other official flows, according to a SBP spokesperson.
Total liquid foreign reserves held by the country, including net foreign reserves held by banks other than the SBP, stood at $9.14 billion on March 21, down 5.23% from the corresponding figure reported for the week ending on March 14.
Net foreign reserves held by banks amounted to $4.71 billion on March 21, which is 2.54% less than the corresponding figure reported a week earlier. Pakistan recently received $1.5 billion as a ‘gift’ from an unidentified Muslim country, which resulted in a sudden hike in the country’s foreign exchange reserves and a strengthening of the currency.
The IMF’s executive board on March 24 approved the third loan tranche of $540 million for Pakistan, which is going to support the country’s foreign exchange reserves position in coming weeks.
Published in The Express Tribune, March 28th, 2014.
Foreign exchange reserves held by the State Bank of Pakistan (SBP) recorded a week-on-week decrease of 7.93% on March 21, according to data released by the SBP on Thursday.
The central bank’s foreign exchange reserves decreased $382 million to $4.42 billion during the week.
The decrease in the central bank’s reserves is due to external debt servicing of $248 million, inclusive of $57 million repayment to the International Monetary Fund (IMF), and other official flows, according to a SBP spokesperson.
Total liquid foreign reserves held by the country, including net foreign reserves held by banks other than the SBP, stood at $9.14 billion on March 21, down 5.23% from the corresponding figure reported for the week ending on March 14.
Net foreign reserves held by banks amounted to $4.71 billion on March 21, which is 2.54% less than the corresponding figure reported a week earlier. Pakistan recently received $1.5 billion as a ‘gift’ from an unidentified Muslim country, which resulted in a sudden hike in the country’s foreign exchange reserves and a strengthening of the currency.
The IMF’s executive board on March 24 approved the third loan tranche of $540 million for Pakistan, which is going to support the country’s foreign exchange reserves position in coming weeks.
Published in The Express Tribune, March 28th, 2014.