ID :
25199
Sat, 10/18/2008 - 09:57
Auther :
Shortlink :
http://m.oananews.org//node/25199
The shortlink copeid
Pak forex reserves at six-year low
Islamabad, Oct 17 (PTI) Pakistan's economic downturn continued unabated Friday, with the rupee hitting an all-time low of Rs 84.50 to the dollar as the country's foreign exchange reserves fell to a six-year low.
The rupee, which has been in virtual free fall over
the past few days, briefly traded at Rs 84.50 to the dollar in
the inter-bank market before the State Bank of Pakistan
intervened by selling about USD 40 million in the foreign
exchange market.
The rupee recovered slightly to close at Rs 83.20 to
the dollar in the inter-bank market following the State Bank's
intervention.
Experts have attributed the fall of the rupee's value
to speculation as well as a high demand for dollars from
importers and general consumers.
The country's forex reserves have also fallen to a
six-year low of less than eight billion dollars. A senior
official of the finance ministry was quoted by The News daily
as saying that foreign exchange reserves Thursday touched a
record low of USD 2.48 billion in real terms, or barely enough
to cater to imports for one-and-half months.
Pakistan was left with overall foreign reserves of USD
7.3 billion, of which the State Bank possessed USD 3.98
billion and commercial banks USD 3.32 billion, the official
said. Of the foreign exchange with the State Bank, USD 1.5
billion are needed for forward booking liabilities, leaving
the central bank with only USD 2.48 billion in real terms.
However, the State Bank in a press release issued last
night said Pakistan had reserves of USD 7.74 billion as of
October 11.
Experts said Pakistan's foreign exchange reserves had
fallen sharply due to higher oil payments and the sale of
dollars by the State Bank in the currency market to stem the
free fall of the rupee.
Despite the State Bank's intervention, dollars have
virtually disappeared from local markets and leading banks in
Islamabad are refusing to provide the U.S. currency even to
foreign nationals with dollar accounts. The scarcity of the
dollar has seen it being traded in the open market for Rs 82
to Rs 84.
In the northwestern city of Peshawar, dollars
disappeared several days ago following rumours that foreign
currency accounts would be frozen. The latest reports from
Peshawar said the dollar was being traded for as much as Rs 87
in the open market.
The finance ministry official was also quoted by The
News as saying that Pakistan's "national debt has increased
alarmingly by Rs 900 billion".
The Pakistan government has been engaged in hectic
consultations with global financial institutions like the
World Bank for assistance to overcome its economic crisis but
there are no signs of such aid coming through in the near
future, observers said.
Pakistan has been unable to finalise a facility with
Saudi Arabia for receiving oil supplies against deferred
payments. It has only received USD 500 million as aid from the
Asian Development Bank. PTI RHL
The rupee, which has been in virtual free fall over
the past few days, briefly traded at Rs 84.50 to the dollar in
the inter-bank market before the State Bank of Pakistan
intervened by selling about USD 40 million in the foreign
exchange market.
The rupee recovered slightly to close at Rs 83.20 to
the dollar in the inter-bank market following the State Bank's
intervention.
Experts have attributed the fall of the rupee's value
to speculation as well as a high demand for dollars from
importers and general consumers.
The country's forex reserves have also fallen to a
six-year low of less than eight billion dollars. A senior
official of the finance ministry was quoted by The News daily
as saying that foreign exchange reserves Thursday touched a
record low of USD 2.48 billion in real terms, or barely enough
to cater to imports for one-and-half months.
Pakistan was left with overall foreign reserves of USD
7.3 billion, of which the State Bank possessed USD 3.98
billion and commercial banks USD 3.32 billion, the official
said. Of the foreign exchange with the State Bank, USD 1.5
billion are needed for forward booking liabilities, leaving
the central bank with only USD 2.48 billion in real terms.
However, the State Bank in a press release issued last
night said Pakistan had reserves of USD 7.74 billion as of
October 11.
Experts said Pakistan's foreign exchange reserves had
fallen sharply due to higher oil payments and the sale of
dollars by the State Bank in the currency market to stem the
free fall of the rupee.
Despite the State Bank's intervention, dollars have
virtually disappeared from local markets and leading banks in
Islamabad are refusing to provide the U.S. currency even to
foreign nationals with dollar accounts. The scarcity of the
dollar has seen it being traded in the open market for Rs 82
to Rs 84.
In the northwestern city of Peshawar, dollars
disappeared several days ago following rumours that foreign
currency accounts would be frozen. The latest reports from
Peshawar said the dollar was being traded for as much as Rs 87
in the open market.
The finance ministry official was also quoted by The
News as saying that Pakistan's "national debt has increased
alarmingly by Rs 900 billion".
The Pakistan government has been engaged in hectic
consultations with global financial institutions like the
World Bank for assistance to overcome its economic crisis but
there are no signs of such aid coming through in the near
future, observers said.
Pakistan has been unable to finalise a facility with
Saudi Arabia for receiving oil supplies against deferred
payments. It has only received USD 500 million as aid from the
Asian Development Bank. PTI RHL
