ISLAMABAD: With the aim to maintain foreign currency reserves, the State Bank of Pakistan (SBP) has decided to purchase dollars from the spot market in the new fiscal year as it bought $2.9 billion in the previous year.
The continued spot market operations by the SBP may also bring the value of Pak rupee against the US currency under pressure.
From July through March last fiscal year, when the central bank was undertaking spot market purchases, the rupee shed its value by 3% against the US dollar, showed a recent report of the International Monetary Fund (IMF).
Pakistan and the IMF have also agreed to increase the Net International Reserves – the net official foreign currency reserves excluding all reserves related liabilities, by another $1 billion to $8.3 billion for end-September period. The officials said the target will largely be achieved by buying dollars from the market.
In its latest report, the IMF said that the SBP has significantly stepped up its spot market purchases of foreign exchange and netted $2.9 billion till end-May 2015. The IMF said these purchases will increase the reserve coverage to well above three months of imports and bolster resilience against future external shocks.
