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Foreign Exchange Reserves Fall Due To Debt Repayment

Foreign Exchange Reserves Fall Due To Debt Repayment
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ISLAMABAD – Foreign Exchange Reserves Fall Due To Debt Repayment. The foreign exchange reserves of the State Bank of Pakistan SBP fell by US$463 million during the week ending on April 3. The reserves are now at $10.722 billion.

According to the figures issued by the SBP, the forex reserves declined due to external debt repayments of $465 million. During the corresponding period the net foreign reserves of commercial banks were $6.265 billion. Meanwhile, the total reserves by the country were at $16.988 billion.

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Earlier this month, the State Bank of Pakistan announced the monetary policy. In that, the policy rate was at 13.25 percent. Meanwhile, Central banks of several countries have slashed their interest rates to stimulate growth. All of this is in the wake of a global slowdown due to the coronavirus.

Foreign Exchange Reserves Fall Due To Debt Repayment.

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The US Federal Reserve recently made another emergency cut to interest rates. Slashing the federal funds rate by one percent to a range of 0-0.25 percent. Whereas, the Bank of England, cut its main interest rate by half a percentage point to a joint-record low of 0.25pc.
Meanwhile, several economic experts have pointed out that it is high time for the SBP to cut its policy rate. “The central bank should reduce the interest rate significantly. As the policy in December is not relevant anymore,” said Dr. Salman Ahmed, Chief Investment Strategist at Lombard, while talking to a private channel.

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