Pakistan's Forex reserves rise to $20.40bln

[miafridi]

KARACHI: Pakistan’s foreign exchange reserves increased $161 million, or 0.78 percent, during the week ended December 4, the central bank said on Thursday.

The total liquid foreign exchange reserves held by the country stood at $20.402 billion, compared with $20.241 billion in the previous week.

The State Bank of Pakistan (SBP) received $359 million from multilateral / bilateral sources, including $307 million from the Asian Development Bank, the SBP’s statement said.

After accounting for external debt repayments, the SBP reserves increased $188 million to $13.298 billion, it added. The forex reserves held by the commercial banks fell to $7.103 billion from $7.130 billion.

https://www.thenews.com.pk/print/75...ness+(Business+News+-+The+News+International)

 

[jee_nee_us]

why did pakistan forex reserves fell from 24 billion dollars to 16 dollars between august 2016 and may 2018.

 

[jee_nee_us]

was the money being spent on keeping the dollar around 100?

 

[mhasan24]

Can someone help me answer that if these reserves will help pay off the debt taken from the IMF in the near future to avoid being under their program? And how this could potentially support in reducing the overall deficit (I can’t remember the exact term), so the country does not roll back to the same situation as before?

And I am asking here to gain an understanding and seek information as I think this is the right thread to ask. And my ask here is NOT to be rhetorical/judgmental or trying to get in arguments for that matter. Just for my information.

Much appreciated in advance.

 

[NasNY]

Can someone help me answer that if these reserves will help pay off the debt taken from the IMF in the near future to avoid being under their program? And how this could potentially support in reducing the overall deficit (I can’t remember the exact term), so the country does not roll back to the same situation as before?

And I am asking here to gain an understanding and seek information as I think this is the right thread to ask. And my ask here is NOT to be rhetorical/judgmental or trying to get in arguments for that matter. Just for my information.

Much appreciated in advance.

Main reason to have reserves is to import what the country needs, major import product is Oil, if there is no money in your bank account then no one will sell you their products, because they know you cant pay for them.

So in short large reserves proves stability of the economy. Only way to increase good reserves is to collect taxes.

 

[jee_nee_us]

Main reason to have reserves is to import what the country needs, major import product is Oil, if there is no money in your bank account then no one will sell you their products, because they know you cant pay for them.

So in short large reserves proves stability of the economy. Only way to increase good reserves is to collect taxes.

Dont we collect taxes in rupees though? I think the more we export the more we ll have foreign reserves?

 

[s.shahid]

was the money being spent on keeping the dollar around 100?

why did pakistan forex reserves fell from 24 billion dollars to 16 dollars between august 2016 and may 2018.

because of massive current account deficit and insane decision of wasting reserves to maintain dollar price.

 

[s.shahid]

Can someone help me answer that if these reserves will help pay off the debt taken from the IMF in the near future to avoid being under their program? And how this could potentially support in reducing the overall deficit (I can’t remember the exact term), so the country does not roll back to the same situation as before?

And I am asking here to gain an understanding and seek information as I think this is the right thread to ask. And my ask here is NOT to be rhetorical/judgmental or trying to get in arguments for that matter. Just for my information.

Much appreciated in advance.

Yes eventually debt will be paid off from the reserves held by state bank of Pakistan (currently $13.298 Billion), but not in near future. Pakistan external debit is 113 Billion.

For reserves to increase inflow of Dollar (exports, remittances & Foreign investment etc) has to be more than the outflow of dollar (import payments, interest payments, capital outflow etc).

 

[NasNY]

Dont we collect taxes in rupees though? I think the more we export the more we ll have foreign reserves?

When we collect taxes in RS we have enough money to buy dollars, we can't print RS because whatever we print has to reported to international financial institutions.
Printing too much devalues the currency increase inflation.

Collecting taxes circulates the same money back to the govt which it can used to buy foreign currency. Dollars are most in demands , because of something called Petrodollars.

You can google the rest.

 

[jee_nee_us]

When we collect taxes in RS we have enough money to buy dollars, we can't print RS because whatever we print has to reported to international financial institutions.
Printing too much devalues the currency increase inflation.

Collecting taxes circulates the same money back to the govt which it can used to buy foreign currency. Dollars are most in demands , because of something called Petrodollars.

You can google the rest.

How can we buy dollars with Rupees , who would want our rupees?

 

[s.shahid]

When we collect taxes in RS we have enough money to buy dollars, we can't print RS because whatever we print has to reported to international financial institutions.
Printing too much devalues the currency increase inflation.

Collecting taxes circulates the same money back to the govt which it can used to buy foreign currency. Dollars are most in demands , because of something called Petrodollars.

You can google the rest.

More taxes means higher government revenue i.e. more money (PKR) government has for spending.

Fiscal deficit is when total income of the government (total taxes and non tax revenue) are less than it's expenditure. To finance fiscal deficit government can either print money (but that increase money supply and causes inflation) or it borrowing money from commercial banks (what we have been doing for years).

 

[s.shahid]

How can we buy dollars with Rupees , who would want our rup

How can we buy dollars with Rupees , who would want our rupees?

We don't buy dollars. We get loans which we have to payback along with interest payments.

 

[NasNY]

How can we buy dollars with Rupees , who would want our rupees?

All countries that buy OIL have to first buy Dollars, then buy oil from the dollars hence the word PETRO-DOLLARS

 

[s.shahid]

All countries that buy OIL have to first buy Dollars, then buy oil from the dollars hence the word PETRO-DOLLARS

Since dollar is the most dominant global currency, most international transactions including oil are done in dollars. Petrodollars are simply dollars paid to oil producing countries in exchange for oil. Like any other transaction, dollars for oil is paid from country's reserves held by central/state bank.

 

[Citizen X]

Raja chawal jaise khota khor patwari asay threads per kabhi nazar nahi aate.

 

[NasNY]

Since dollar is the most dominant global currency, most international transactions including oil are done in dollars. Petrodollars are simply dollars paid to oil producing countries in exchange for oil. Like any other transaction, dollars for oil is paid from country's reserves held by central/state bank.

Search petrodollars on YouTube. Petro dollars are because of an agreement between US and Saudi Arabia in the 1970s. Currently. China Brazil are moving away from petrodollars. Enlighten yourself.

 

[NasNY]

Since dollar is the most dominant global currency, most international transactions including oil are done in dollars. Petrodollars are simply dollars paid to oil producing countries in exchange for oil. Like any other transaction, dollars for oil is paid from country's reserves held by central/state bank.

 

[s.shahid]

Agreement between USA and Saudi Arabia was to PRICE oil in dollars (instead of gold or any other commodity) and reinvest dollars into us treasury to finance their deficit. In exchange USA will ensure stabilization of dollar and sell weapons to Saudi Arabia.

In exchange for the oil-producing countries only accepting dollars for oil and oil being a major consumption item, the petrodollar system ensured the U.S. dollar to be the WORLD'S reserve currency.

Pakistan pays dollars for oil import from state bank's dollar reserves.

Ap dollar kis say buy kerain gaay in exchange of Pak rupees (collected by government through taxes) and more importantly woh rupees unkay kis kaam kay?

 

[NasNY]

Agreement between USA and Saudi Arabia was to PRICE oil in dollars (instead of gold or any other commodity) and reinvest dollars into us treasury to finance their deficit. In exchange USA will ensure stabilization of dollar and sell weapons to Saudi Arabia.

In exchange for the oil-producing countries only accepting dollars for oil and oil being a major consumption item, the petrodollar system ensured the U.S. dollar to be the WORLD'S reserve currency.

Pakistan pays dollars for oil import from state bank's dollar reserves.

Ap dollar kis say buy kerain gaay in exchange of Pak rupees (collected by government through taxes) and more importantly woh rupees unkay kis kaam kay?

o pai,

you are not going to get it , search for your answers on the internet you will find them.

here are some questions to ponder.
1.How do you buy dollars?
2.Why is Afghanistan currency worth more than Pakistani RS but nobody in the world buys Afghan , its only useful in Afghanistan.

3.How are world currencies tied to Gold, and other Commodities?
4.What is GDP how it determines Currency prices.
5.Why is US debt in 25 Trillions yet it is considered worlds top economy?
6.What is Currency trading?

7. What is the purpose of google search.

Once you find these answers the picture will become clearer.

Good night!

 

[s.shahid]

o pai,

you are not going to get it , search for your answers on the internet you will find them.

here are some questions to ponder.
1.How do you buy dollars?
2.Why is Afghanistan currency worth more than Pakistani RS but nobody in the world buys Afghan , its only useful in Afghanistan.

3.How are world currencies tied to Gold, and other Commodities?
4.What is GDP how it determines Currency prices.
5.Why is US debt in 25 Trillions yet it is considered worlds top economy?
6.What is Currency trading?

7. What is the purpose of google search.

Once you find these answers the picture will become clearer.

Good night!