Pakistan’s foreign exchange reserves are dwindling by the day while Pakistan is struggling to get some cash from outside lenders. So far has not been able to get any cash.
Saudi Arabia has offered some help in the form of deferred payment for oil imports. In the mean time foreign exchange reserves are depleting very fast.
As of November 1, 2008 the total foreign
exchange reserves in the country were US $6.758 billion said State Bank of Pakistan on Thursday. In this amount State Bank holds US $3.529 billion and rest of the amount US$ 3.228 is with the banks other than State Bank.
Foreign exchange reserves has gone down to more than half during the last one year.
Since beginning of the year State Bank has been intervening in the foreign exchange markets by pouring in dollars to protect the extreme volatility and dwindling exchange rate of rupees against US dollar.
This support given to rupee resulted in sharp depletion of
foreign exchange reserves. It did not succeed in stopping the rupee’s slide anyway.
Since January 2008 rupee has lost about 32 percent of its value against US dollar.
Political and economic uncertainty in the country has been another factor which effected rupee very badly. Government still don’t have any action plan to get the country out of economic turmoil other a loan under approval process from IMF.
At present one US dollar is around 80 rupees. It may go further down.
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