Forex reserves ease to $16.74b
Rupee eases against dollar in currency market, overnight rates end at 11% in money market.
KARACHI:
Foreign exchange reserves fell to $16.74 billion in the week ended November 27, down from $16.85 billion the previous week, the central bank said on Thursday.
Reserves held by the State Bank of Pakistan (SBP) eased to $12.97 billion from $13.11 billion during the week, while those held by commercial banks rose to $3.77 billion from $3.74 billion, said the State Bank of Pakistan.
“The State Bank of Pakistan’s reserves fell due to debt payments,” said Syed Wasimuddin, chief spokesman for the central bank.
Reserves hit a record high of $17.1 billion in the week ended October 15 because of an increase in remittances from overseas Pakistanis and a narrowing trade deficit.
They were boosted in September after the International Monetary Fund sent $450 million and said that the money would go towards the budget to help with additional spending for flood relief and immediate foreign exchange needs.
This was separate from the $11.3 billion IMF bailout programme, agreed in 2008. In May, the government received $1.13 billion, the fifth tranche of the programme.
The IMF is likely to delay the possible release of the sixth tranche because of the slow implementation of fiscal reforms.
In the currency market, the rupee eased against the dollar to 85.80/85, compared with Wednesday’s close of 85.64/69 amid increase in import payments and dealers expect pressure to remain because of rising international oil prices.
In the money market, overnight rates ended at 11 per cent compared with Wednesday’s close of 11.50 per cent, as dealers said there were some hidden inflows.
Published in The Express Tribune, December 3rd, 2010.
Foreign exchange reserves fell to $16.74 billion in the week ended November 27, down from $16.85 billion the previous week, the central bank said on Thursday.
Reserves held by the State Bank of Pakistan (SBP) eased to $12.97 billion from $13.11 billion during the week, while those held by commercial banks rose to $3.77 billion from $3.74 billion, said the State Bank of Pakistan.
“The State Bank of Pakistan’s reserves fell due to debt payments,” said Syed Wasimuddin, chief spokesman for the central bank.
Reserves hit a record high of $17.1 billion in the week ended October 15 because of an increase in remittances from overseas Pakistanis and a narrowing trade deficit.
They were boosted in September after the International Monetary Fund sent $450 million and said that the money would go towards the budget to help with additional spending for flood relief and immediate foreign exchange needs.
This was separate from the $11.3 billion IMF bailout programme, agreed in 2008. In May, the government received $1.13 billion, the fifth tranche of the programme.
The IMF is likely to delay the possible release of the sixth tranche because of the slow implementation of fiscal reforms.
In the currency market, the rupee eased against the dollar to 85.80/85, compared with Wednesday’s close of 85.64/69 amid increase in import payments and dealers expect pressure to remain because of rising international oil prices.
In the money market, overnight rates ended at 11 per cent compared with Wednesday’s close of 11.50 per cent, as dealers said there were some hidden inflows.
Published in The Express Tribune, December 3rd, 2010.