Foreign exchange reserves drop to USD 16.96 bn – Alfalah Securities Limited
Karachi: Pakistan’s overall foreign exchange reserves have dropped to USD 16.96 bn in the week ending on November 18, 2011 against USD 17.031 bn in the previous week owing to payments of hefty import bills and repayment of debt while, witnessing a decline of 0.41% WoW.
According to Alfalah Securities, Forex reserves held by the State Bank of Pakistan (SBP) stood at USD 13.20 bn as on November 18, 2011 as compared to USD 13.27 bn in the week ending November 11, 2011 whereas, reserves held by the commercial banks remained unchanged at USD 3.76 bn during the period. It is important to consider that the forex reserves rose significantly to a record level of USD 18.31 bn, up by USD 411 mn in June 2011 mainly due high Worker’s remittances and foreign inflows of USD 191.9 mn and USD 196.8 mn from the World Bank (WB) and Asian Development Bank (ADB) respectively. A decline in the foreign reserves depicts an alarming situation for the economy on the external front especially when the country has to make scheduled debt repayments to the IMF from February 2012.
Sell on Strength.