Forex reserves declined by USD 77 million in a week – Alfalah Securities Limited

Karachi, January 28, 2013 (PPI-OT): The country’s forex reserves witnessed a decline of USD 77.0 million during last week where the total liquid foreign exchange reserves held by the country have lowered to USD 13.705 billion on January 18, 2013 as compared to USD 13.782 billion as on January 11, 2013.

According to Alfalah Securities Limited, the decline is mainly attributed to the payments of import proceeds and foreign obligations. Reserves held by the central bank declined by USD 141 million to USD 8.809 billion during the period under review, while banks’ reserves increased by USD 65 million to USD 4.896 billion as on January 18, 2013. The decline in forex reserves would exert pressure on the value of Pak Rupee against Dollar. Pak Rupee has already witnessed an overall devaluation of ~9% in 2012. Alfalah Securities Limited expects further 8% devaluation in 2013, however, Alfalah Securities Limited expects currency to stabilize in 2014 where the IMF loan repayments are almost over and Alfalah Securities Limited may see export to have picked up due to currency devaluation.

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