Pakistan Foreign Exchange reserves register massive setback
ISLAMABAD - Pakistan Foreign Exchange reserves register massive setback in the month of March.
Foreign exchange reserves of the country continued to witness a steep decline in the month of March which saw a decline of over $1.51 billion.
According to the statistics updated by the State Bank of Pakistan (SBP), the foreign exchange reserves declined by $804 million in the week ending on March 27. In the previous week, the reserves declined by $690 million.
The significantly alarming decline in reserve situation put pressure on the Rupee which once touched a level of 169 in the interbank market, the lowest level in its history.
The central bank made a payment of $441 million in the closing week on the account of debt payment and other official heads whereas it also paid off an amount of $391 million in the previous week on the same account.
The foreign exchange reserves declined to $17.3 billion from $18.9 billion during March.
The reserves level of the central bank also decreased to $11.1 billion from $12.7 billion.
Meanwhile, foreign exchange reserves maintained by commercial banks saw inflows of $89 million which increased to $6.201 billion by the end of March 27.
The situation of foreign exchange is going to danger level again if it depletes in an alarmingly way provided the country receives fresh flows from various avenues including foreign assistance from International Monetary Fund, Asian Development Bank, World Bank and etc.