ADVERTISEMENT

SBP Ready To Take Required Action Amidst Coronavirus Panic

State Bank Injects Rs 347 Billion Into The Money Market
ADVERTISEMENT

ISLAMABAD – SBP Ready To Take Required Action Amidst Coronavirus Panic. Due to the Novel Coronavirus COVID-19, central banks around the world are adopting measures to combat the pandemic. Similarly, State Bank of Pakistan has also said that it would take action to support the financial markets.

According to details, the outbreak of coronavirus has not been just a health emergency but a financial one as well. Since global markets seem clueless against coronavirus as of yet. Which has resulted in the loss of billions of dollars around the world.

ADVERTISEMENT

Governor State Bank of Pakistan, Syed Reza Baqir, on Monday, talked about this. He said, “the central bank is monitoring the situation closely. It remains ready to take any actions needed to address disorderly market conditions. The outflow of ‘hot money’ has picked up momentum and divested amount reached about one billion dollars.”

According to latest data released by State Bank of Pakistan on Thursday, cumulatively foreign investors have divested some $972 million. This is from their investments in government securities including Treasury Bills and Investment Bonds during this fiscal year. SBP Ready To Take Required Action Amidst Coronavirus Panic.

ADVERTISEMENT
Meanwhile, a number of central banks around the world have already slashed interest rates. This is to stimulate growth amid the slowdown in the economy caused by COVID-19. The US Federal Reserve, on Sunday made another emergency cut to interest rates. This slashed the federal funds rate by one percent to a range of 0-0.25 percent.
Furthermore, the Bank of England, cut its main interest rate by half a percentage point to a joint-record low of 0.25pc. The Coronavirus is spreading rapidly, stoking fears of global recession and roiling markets.

Leave a Reply

Your email address will not be published. Required fields are marked *