SBP’s reserves down 0.57%, clock in at $10,305m
Payments made on account of external debt servicing, other commitments
Payments made on account of external debt servicing, other commitments. CREATIVE COMMONS
KARACHI:
Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased 0.57% on a weekly basis on December 26, according to data released by the central bank on Thursday.
SBP’s liquid foreign exchange reserves decreased by $60 million to $10,305 million compared to $10,365 million in the preceding week.
Between December 19 and 26, the SBP made payments of $197 million on account of external debt servicing and other official payments, of which $139 million was paid to the International Monetary Fund (IMF) under the Stand-by Agreement.
Total liquid foreign reserves held by the country, including net reserves held by banks other than the SBP, stood at $14,944.7 million while net foreign reserves held by banks amounted to $4,639.8 million.
Pakistan’s foreign exchange reserves witnessed a rapid rise in December. During the week ending on December 19, the SBP received $1,221 million from multilateral, bilateral and other sources, which included $1,051 million received from the IMF. This resulted in a weekly increase of 10.9% in the SBP’s foreign exchange reserves.
Similarly, the central bank’s liquid foreign reserves increased 10.6% on a week-on-week basis at the end of the first week of December. The massive increase was a result of Pakistan getting $1 billion against the issuance of Sukuk bonds.
The SBP-held foreign exchange reserves increased three times in 2014. The rapid rise in foreign exchange reserves led to an appreciation of 4% in the rupee’s value against the dollar on a period-end basis after a gap of 11 years, according to Topline Securities.
Improved foreign exchange reserves in 2015 will likely stabilise the rupee-dollar parity, which is expected to hover around Rs100-102. “Along with other major inflows, a 30% reduction in oil prices could result in annual savings of $4 billion, which is likely to support external account of the country significantly,” it said.
Published in The Express Tribune, January 2nd, 2015.
Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased 0.57% on a weekly basis on December 26, according to data released by the central bank on Thursday.
SBP’s liquid foreign exchange reserves decreased by $60 million to $10,305 million compared to $10,365 million in the preceding week.
Between December 19 and 26, the SBP made payments of $197 million on account of external debt servicing and other official payments, of which $139 million was paid to the International Monetary Fund (IMF) under the Stand-by Agreement.
Total liquid foreign reserves held by the country, including net reserves held by banks other than the SBP, stood at $14,944.7 million while net foreign reserves held by banks amounted to $4,639.8 million.
Pakistan’s foreign exchange reserves witnessed a rapid rise in December. During the week ending on December 19, the SBP received $1,221 million from multilateral, bilateral and other sources, which included $1,051 million received from the IMF. This resulted in a weekly increase of 10.9% in the SBP’s foreign exchange reserves.
Similarly, the central bank’s liquid foreign reserves increased 10.6% on a week-on-week basis at the end of the first week of December. The massive increase was a result of Pakistan getting $1 billion against the issuance of Sukuk bonds.
The SBP-held foreign exchange reserves increased three times in 2014. The rapid rise in foreign exchange reserves led to an appreciation of 4% in the rupee’s value against the dollar on a period-end basis after a gap of 11 years, according to Topline Securities.
Improved foreign exchange reserves in 2015 will likely stabilise the rupee-dollar parity, which is expected to hover around Rs100-102. “Along with other major inflows, a 30% reduction in oil prices could result in annual savings of $4 billion, which is likely to support external account of the country significantly,” it said.
Published in The Express Tribune, January 2nd, 2015.