Foreign exchange SBP reserves rise $95m to $12.8b

[Shahzaz ud din]

Foreign exchange SBP reserves rise $95m to $12.8b

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The foreign exchange reserves held by the central bank increased 0.74% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday.

On September 4, the foreign currency reserves held by the SBP were recorded at $12,807.8 million, up $95 million compared with $12,712.7 million in the previous week.

The central bank attributed the increase to proceeds worth $121 million received from the Asian Development Bank (ADB).

Overall, liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $19,961.3 million. Net reserves held by banks amounted to $7,153.5 million.

Pakistan received the first loan tranche of $991.4 million from the International Monetary Fund (IMF) on July 9 last year, which helped bolster the reserves. In late December, the IMF released the second loan tranche of around $454 million.

Previously, the reserves jumped on account of $2.5 billion in inflows from China.

A few months ago, the SBP successfully made foreign debt repayment of over $1 billion on the maturity of Sukuk.

In December 2019, the foreign exchange reserves surpassed the $10-billion mark owing to inflows from multilateral lenders including $1.3 billion from the ADB.

Source

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[HammerHead081]

The most liquid foreign currency reserves held by pakistan was in 2016-17 which was $24,025 million. Lets see if Pakistan can surpass this amount.

 

[Patriot forever]

The most liquid foreign currency reserves held by pakistan was in 2016-17 which was $24,025 million. Lets see if Pakistan can surpass this amount.

This is what uncontrolled current account deficit can do to the economy. FY 17 and 18 evaporated these reserves. An eye opener for people who support import driven economic bubble in a country which survives on textile and produce.

 

[Protest_again]

The most liquid foreign currency reserves held by pakistan was in 2016-17 which was $24,025 million. Lets see if Pakistan can surpass this amount.

Does this SBP forex reserves also include place holding forex support provided by UAE ($2 billion), Saudi ($2 billion still with Pakistan), and China (undisclosed amount). If so SBP really has no more than $7-8 billion of it's own.

 

[Patriot forever]

Does this SBP forex reserves also include place holding forex support provided by UAE ($2 billion), Saudi ($2 billion still with Pakistan), and China (undisclosed amount). If so SBP really has no more than $7-8 billion of it's own.

Saudi Arabia already withdrew 1 billion, UAE also gave only partial amount as far as I know. Chinese converted it into loan at very low interest so we are good for the foreseeable future. Our CAD for last year was only 2-3 billion dollars.

 

[Protest_again]

Saudi Arabia already withdrew 1 billion, UAE also gave only partial amount as far as I know. Chinese converted it into loan at very low interest so we are good for the foreseeable future. Our CAD for last year was only 2-3 billion dollars.

I mean you suppressed your trade with the world (by way of reduced imports and exports) and in the process got poorer. That is the poorest way to balance CAD. It would have been an achievement had exports improved to balance the imports. That would have led to economic growth and people richer and happier.

What Imran did is what any layman could have done. He left average Pakistani poorer. There is zero to no growth. Your debt to revenue (due to devaluing rupee) got that much bigger leaving not much to use as capital expenditure. This will further lead to low growth. You are caught very vicious low growth cycle unfortunately.

Saudi gave you $3 billion for place holding ($2 billion is to be returned yet).

UAE gave to $2 billion for forex support.

China gave a $1 billion which it allowed you to use (converted to loan) recently to pay off Saudi.

So in all $4 billion is still with SBP, which it cannot use.

 

[Patriot forever]

I mean you suppressed your trade with the world (by way of reduced imports and exports) and in the process got poorer. That is not something to gloat about. That is the poorest way to balance CAD. It would have been an achievement had exports improved to balance the imports. That would have led to economic growth and people richer and happier.

What Imran did is what any layman could have don. He left average Pakistani poorer. There is zero to no growth. Your debt to revenue (due to devaluing rupee) got that much bigger leaving less than not much to spend on capital investment. This will further lead to low growth. You are caught very vicious low growth cycle.

Well what IK did Modi couldn't do. It's hilarious coming from a person whose country contracted 24.9% last quarter. Our this year's growth will be better than India for sure

Besides sometimes that is the only recourse left in the short term, I know how badly India wanted Pakistan to default which would have happened in less than a year since he took office if previous policies were followed. You know how much poorer citizens get when their country bankrupts.
We are feeling alot better and safe knowing we won't be carrying cash in suitcases to buy bread.

We are in a much better position now to fulfill our monetary commitments, you don't need to worry about that.

 

[Protest_again]

Well what IK did Modi couldn't do. It's hilarious coming from a person whose country contracted 24.9% last quarter. Our this year's growth will be better than India for sure

Besides sometimes that is the only recourse left in the short term, I know how badly India wanted Pakistan to default which would have happened in less than a year since he took office if previous policies were followed. You know how much poorer citizens get when their country bankrupts.
We are feeling alot better and safe knowing we won't be carrying cash in suitcases to buy bread.

India went into strict curfew for most part of that quarter. Nominally speaking we'll be okay. Our currency appreciation of 8%(78 to 73) and inflation of 5% will offset the degrowth this year. We'll still stay over $3 trillion economy even this year.

Also even with such degrowth India's financials are way better than Pakistan.

I see you are hurt by my post. Since you believe Imran is better, here is to many more years of Imran in Pakistan. Good luck.

 

[Patriot forever]

India went into strict curfew for most part of that quarter. Nominally speaking we'll be okay. Our currency appreciation of 8%(78 to 73) and inflation of 5% will offset the degrowth this year. We'll still stay over $3 trillion economy even this year.

Also even with such degrowth India's financials are way better than Pakistan.

I see you are hurt by my post. Since you believe Imran is better, here is to many more years of Imran in Pakistan. Good luck.

Did the curfew helped. As I said IK is way better than Modi. Just take a look at your current COVID situation and economic forecasts by major rating agencies.

Anyways Good Luck with Modi for many more years.

 

[Protest_again]

Did the curfew helped. As I said IK is way better than Modi. Just take a look at your current COVID situation and economic forecasts by major rating agencies.

Anyways Good Luck with Modi for many more years.

It did help. It would have been disastrous had we left it tochance. Today India is much more prepared to handle such infections. I wouldn't want to comment about a country that don't do testing even though both have similar positivity rate at 5%.

 

[Patriot forever]

It did help. It would have been disastrous had we left it tochance. Today India is much more prepared to handle such infections. I wouldn't want to comment about a country that don't do testing even though both have similar positivity rate at 5%.

Pakistan positive ratio is hovering between 1-2% and India's is between 7- 10%. Our mortality per million population is almost half as compared to India.

World considers Pakistan a success story, on the other hand they are very concerned about India, the new epicenter.

 

[HammerHead081]

I mean you suppressed your trade with the world (by way of reduced imports and exports) and in the process got poorer. That is the poorest way to balance CAD. It would have been an achievement had exports improved to balance the imports. That would have led to economic growth and people richer and happier.

What Imran did is what any layman could have done. He left average Pakistani poorer. There is zero to no growth. Your debt to revenue (due to devaluing rupee) got that much bigger leaving not much to use as capital expenditure. This will further lead to low growth. You are caught very vicious low growth cycle unfortunately.

Saudi gave you $3 billion for place holding ($2 billion is to be returned yet).

UAE gave to $2 billion for forex support.

China gave a $1 billion which it allowed you to use (converted to loan) recently to pay off Saudi.

So in all $4 billion is still with SBP, which it cannot use.

What IK did was prevent us from getting defaulted and stabilized our economy, we won't be looking for more IMF bailouts if we keep at it. A low GDP growth is fine as long as CPEC progresses and when its phases are done, our GDP growth will increase massively because of it. This year, CPEC phase 2 started, we will slowly start to see the benefits after establishment of SEZs.

 

[EpiiC]

The most liquid foreign currency reserves held by pakistan was in 2016-17 which was $24,025 million. Lets see if Pakistan can surpass this amount.

Does this SBP forex reserves also include place holding forex support provided by UAE ($2 billion), Saudi ($2 billion still with Pakistan), and China (undisclosed amount). If so SBP really has no more than $7-8 billion of it's own.

$7-8 Billion dollars is the same as Afghanistan's forex reserve. Are you saying failed state Afghanistan might technically have higher reserves than 220 Million strong Pakistan? UNREAL!

To get to peak level may require 3-4 more years so maybe by 2025 we may have over $25B+ forex reserves by which time Bangladesh maybe at $50-60 Billion. India probably $650+ Billion.

 

[Syed1.]

Guys btw this $12.8b is the ones held by SBP. Private banks also hold $8-9b.

So total foreign reserves are upwards of $20b which is no way sufficient but better than the situation left by Dar and Noon league. We need to get to $100b ASAP.