Forex reserves fall to $16.39b
Reserves held by the State Bank of Pakistan fell to $12.63 billion from $12.69 billion.
KARACHI:
Foreign exchange reserves fell to $16.39 billion in the week ended December 18, down from $16.41 billion the previous week, the central bank said on Thursday.
Reserves held by the State Bank of Pakistan (SBP) fell to $12.63 billion from $12.69 billion while those held by commercial banks rose to $3.76 billion from $3.72 billion, said central bank Syed Wasimuddin chief spokesman.
The 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. Earlier the reserves got a boost in September after the International Monetary Fund (IMF) 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 in the fifth tranche of the programme.
In the currency market, the rupee ended firmer at 85.71/76 to the dollar, compared with Wednesday’s close of 85.77/82 amid a lack of import payments but dealers expect pressure on the local unit following an increase in international oil prices.
In the money market, overnight rates ended flat at its top level of 13.90 per cent, unchanged from the previous day’s close as there were scheduled outflows of Rs20.5 billion ($239 million) from the Pakistan Investment Bond auction held on Wednesday.
Published in The Express Tribune, December 24th, 2010.
Foreign exchange reserves fell to $16.39 billion in the week ended December 18, down from $16.41 billion the previous week, the central bank said on Thursday.
Reserves held by the State Bank of Pakistan (SBP) fell to $12.63 billion from $12.69 billion while those held by commercial banks rose to $3.76 billion from $3.72 billion, said central bank Syed Wasimuddin chief spokesman.
The 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. Earlier the reserves got a boost in September after the International Monetary Fund (IMF) 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 in the fifth tranche of the programme.
In the currency market, the rupee ended firmer at 85.71/76 to the dollar, compared with Wednesday’s close of 85.77/82 amid a lack of import payments but dealers expect pressure on the local unit following an increase in international oil prices.
In the money market, overnight rates ended flat at its top level of 13.90 per cent, unchanged from the previous day’s close as there were scheduled outflows of Rs20.5 billion ($239 million) from the Pakistan Investment Bond auction held on Wednesday.
Published in The Express Tribune, December 24th, 2010.