Reserves held by the State Bank of Pakistan (SBP) fell to $13.13 billion from $13.18 billion in the week ended November 5, while those held by commercial banks rose to $3.78 billion from $3.77 billion, the SBP said in a statement.
In the currency market, the rupee ended flat at 85.55/6 to the dollar, unchanged from Tuesday’s close but dealers expected pressure on the local currency following an increase in international oil prices.
The rupee had been supported in previous days by higher remittances by overseas Pakistanis. According to official data, remittances rose 13.32 percent to $3.5 billion in the first four months of fiscal year 2010/11 compared to the same period last year.
In the money market, overnight rates rose to end between 12.50 per cent and 13 per cent, compared to Tuesday’s close of 10.50 per cent due to tight liquidity in the interbank market following a net outflow of about Rs26 billion.
Published in The Express Tribune, November 23rd, 2010.
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