Forex reserves hit another unprecedented high in January 2020
The first month of 2020 has been good for at least one macroeconomic indicator. Foreign exchange Forex reserves, which increased by $ 559.7 million in January.
Reserves had substantial inflows of $ 359 million in the closing week, and reached a new high of $ 18.644 million ($ 18.084 billion), the Pakistani state bank said.
The central bank’s net currency reserves increased to $ 12.27 billion. The commercial banks’ net currency reserves are $ 6.37 billion.
The constant inflows continued to ensure stability in the country’s reserves. A large part of the inflows come from foreign investors, particularly from Great Britain and the USA, investing in government bonds and securities with attractive profit ratios. In addition to investments, loans are part of the inflows of various foreign banks and countries.
As a result, the rupee remains strong against the dollar, which also includes import bills and the country’s current account deficit. (Forex reserves)