Forex reserves fall further to $16.67bn

KARACHI: The country’s foreign exchange reserves further fell to $16.67 billion in the week ending December 8, compared with $16.88 billion in the previous week, the central bank said on Thursday.

Reserves held by the State Bank of Pakistan fell to $12.86 billion from $13.12 billion the previous week. Reserves held by commercial banks rose to $3.813 billion from the previous week’s level of $3.76 billion.

Foreign exchange reserves hit a record $18.31 billion in the week ending on July 30, but have since eased due to debt repayments. The reserves were boosted in June by inflows of $411 million, including a $191.9 million loan from the World Bank, and a loan of $196.8 million from the Asian Development Bank.

Higher export proceeds, and a record inflow of remittances, have also helped support Pakistan’s foreign exchange reserves.

According to official data, remittances rose 23.24 percent to $4.3 billion in the first four months of the 2010-11 fiscal year (July-June), compared with $3.50 billion in the same period last year.

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