Foreign exchange reserves witnessing a decline – Alfalah Securities Limited
Karachi: Pakistan’s liquid foreign reserves have dropped by USD101 million (down by 0.6% WoW) to ~USD 16.802 billion on January 20, 2012 from USD 16.901 billion last week.
According to Alfalah Securities Limited, the foreign reserves with SBP dropped to USD 12.553 billion while the net foreign reserves held by banks improved to about USD 4.249 billion. Alfalah Securities Limited believes a decline in forex reserves is justifiable and would shed further keeping in view the increased debt repayments and soaring trade deficit. The declining forex reserves would lead to steeper devaluation of Pak Rupee against US dollar where Alfalah Securities Limited expects the currency to devalue by 8% in 2012.