KARACHI -- Pakistan has received a $500 million loan from the World Bank to help stabilize the economy, an official at the country's central bank said Tuesday.
The loan is interest-free and for 35 years, said the State Bank of Pakistan official, who didn't want to be named.
The loan from the bank's International Development Association is aimed at helping protect the poor and improving the country's competitiveness by shoring up the financial sector and cutting barriers to starting a business.
"The loan from the World Bank will help contain the current account deficit, which in the year ended June 30, 2008, ballooned to more than $14 billion, putting immense pressure on the country's forex reserves," said Mohammed Imran, head of research at First Capital Equities Ltd., a Karachi-based brokerage house.
"Besides this, the arrival of inflows from the International Monetary Fund and Asian Development Bank amounting to $1.44 billion in coming days will help strengthen the rupee," Mr. Imran said.
But, in order to help exports, the central bank may not allow the rupee to rise, he added.
The International Monetary Fund's executive board Monday approved a disbursement of $847.1 million of a loan to Pakistan, as the country's growth outlook worsened.
The additional access to funds follows the first review of the $7.6 billion, 23-month standby facility the IMF granted Pakistan in November, bringing the total disbursements under the program to $3.9 billion.
According to the World Bank, Pakistan has experienced severe external and internal shocks in the past year and is confronting a very difficult macroeconomic situation. The rise in international oil and food prices sharply inflated the country's import bill and the subsequent slowdown in the global economy dampened demand for Pakistan's exports.
Also, political turmoil and uncertainty affected investor confidence which, together with macroeconomic imbalances, led to capital outflows, the World Bank said in a press release March 27.
According to latest State Bank of Pakistan data, the country's foreign exchange reserves rose to $10.161 billion in the week ended March 14 from $10.053 billion the previous week.
Sunday, April 5, 2009
Saturday, April 4, 2009
Forex reserves go hefty
Karachi—The foreign exchange reserves of the country which at present near $11 billion are bound to touch $15 billion mark by December this year depicting a strong signal for improving the current exchange rates which at present is under deepest depreciation at the moment.
In fact, the cash flow from external resources including World Bank, Asian Development Bank, International Monetary Fund and US financial support is likely to build up foreign exchange resaves beyond $15 billion by December 2009.
The forex reserves position today was estimated at $ 10,090.0 million which includes $ 6,634.0 million held by the central bank, while net foreign reserves held by banks other than State Bank of Pakistan stood $ 3,456.0 million
It may be noted that the release of World Bank and ADB loans, in addition to the USD 844mn second tranche of the IMF loan, will further strengthen the FX reserve position.
This improved reserves position would support the Pakistan Rupee resulting in improved exchange rate of the country which at present is the most depreciated currency against dollar in the region.
The devaluation of rupee arising inflation, has consequently increased the incidence of poverty to an alarming level of 37.5% in 2008 from 23.9% in 2005, reflecting the loss in purchasing power on account of record high inflation and rising unemployment.
The USD 500mn World Bank loan will support the spending outlined in the Government’s recently adopted Second Poverty Reduction Strategy Paper (PRSP II). The focus will be on increasing spending on labour-intensive infrastructure projects including roads, highways, and low-cost housing and irrigation projects.
The government has however planned to scale up pro-poor spending from Rs 573billion i.e. 5.46% of GDP in FY08 to Rs 1,850billion which will be 8.14% of GDP under the PRSP II strategy.
In fact, the cash flow from external resources including World Bank, Asian Development Bank, International Monetary Fund and US financial support is likely to build up foreign exchange resaves beyond $15 billion by December 2009.
The forex reserves position today was estimated at $ 10,090.0 million which includes $ 6,634.0 million held by the central bank, while net foreign reserves held by banks other than State Bank of Pakistan stood $ 3,456.0 million
It may be noted that the release of World Bank and ADB loans, in addition to the USD 844mn second tranche of the IMF loan, will further strengthen the FX reserve position.
This improved reserves position would support the Pakistan Rupee resulting in improved exchange rate of the country which at present is the most depreciated currency against dollar in the region.
The devaluation of rupee arising inflation, has consequently increased the incidence of poverty to an alarming level of 37.5% in 2008 from 23.9% in 2005, reflecting the loss in purchasing power on account of record high inflation and rising unemployment.
The USD 500mn World Bank loan will support the spending outlined in the Government’s recently adopted Second Poverty Reduction Strategy Paper (PRSP II). The focus will be on increasing spending on labour-intensive infrastructure projects including roads, highways, and low-cost housing and irrigation projects.
The government has however planned to scale up pro-poor spending from Rs 573billion i.e. 5.46% of GDP in FY08 to Rs 1,850billion which will be 8.14% of GDP under the PRSP II strategy.
Pakistan Forex Reserves $10.09 Billion In Week Ended March 28
Pakistan's foreign exchange reserves fell to $10.090 billion in the week ended March 28 from $10.257 billion the previous week, the State Bank of Pakistan said Thursday.
Holdings of foreign exchange reserves by the central bank were $6.634 billion, compared with $6.790 billion in the previous week.
Foreign exchange deposits held by commercial banks were $3.456 billion, compared with $3.466 billion in the week ended March 21, the central bank said in a statement.
Pakistan received $500 million from the World Bank and $848 million from the International Monetary Fund this week to help stabilize the country's economy.
The loan amounts are likely to be added in the reserves position statement next week.
-By Haris Zamir, Contributing to Dow Jones Newswires; 91-11-43563300; chandrasekhar.jayachandran@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=MtmmKfEEsEHQazdp94pTDA%3D%3D. You can use this link on the day this article is published and the following day.
Holdings of foreign exchange reserves by the central bank were $6.634 billion, compared with $6.790 billion in the previous week.
Foreign exchange deposits held by commercial banks were $3.456 billion, compared with $3.466 billion in the week ended March 21, the central bank said in a statement.
Pakistan received $500 million from the World Bank and $848 million from the International Monetary Fund this week to help stabilize the country's economy.
The loan amounts are likely to be added in the reserves position statement next week.
-By Haris Zamir, Contributing to Dow Jones Newswires; 91-11-43563300; chandrasekhar.jayachandran@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=MtmmKfEEsEHQazdp94pTDA%3D%3D. You can use this link on the day this article is published and the following day.
G20 musters $1.1 trillion to fight global crisis
"Today's agreement begins to crack down on the cowboys in financial markets that have brought global markets undone," Australian Prime Minister Kevin Rudd said.
Some economists said the new IMF funds masked the fact that there was no agreement for more fiscal stimulus actions by individual countries, something the United States, UK and Japan wanted but France and Germany strongly resisted.
In the United States, the Financial Accounting Standards Board voted to give banks more flexibility in valuing toxic assets. The changes, to take effect in the second quarter, could reduce writedowns and soften blows to bank earnings.
But the news on the unemployment front continued to worsen.
The number of U.S. workers filing new claims for jobless benefits rose to their highest level in more than 26 years last week.
Data released in Spain showed the number of people claiming jobless benefits climbed steeply in March and at a much higher rate than larger European economies. Euro zone unemployment jumped more than expected in February to 8.5 percent.
As the ranks of the unemployed grow, so too do their debt loads.
A report by the American Bankers Association, which represents most large U.S. banks and credit card companies, said the percentage of consumer loans at least 30 days late rose to a seasonally adjusted 3.22 percent in the October-to-December period from 2.9 percent in the prior quarter.
Some economists said the new IMF funds masked the fact that there was no agreement for more fiscal stimulus actions by individual countries, something the United States, UK and Japan wanted but France and Germany strongly resisted.
In the United States, the Financial Accounting Standards Board voted to give banks more flexibility in valuing toxic assets. The changes, to take effect in the second quarter, could reduce writedowns and soften blows to bank earnings.
But the news on the unemployment front continued to worsen.
The number of U.S. workers filing new claims for jobless benefits rose to their highest level in more than 26 years last week.
Data released in Spain showed the number of people claiming jobless benefits climbed steeply in March and at a much higher rate than larger European economies. Euro zone unemployment jumped more than expected in February to 8.5 percent.
As the ranks of the unemployed grow, so too do their debt loads.
A report by the American Bankers Association, which represents most large U.S. banks and credit card companies, said the percentage of consumer loans at least 30 days late rose to a seasonally adjusted 3.22 percent in the October-to-December period from 2.9 percent in the prior quarter.
IMF sees world economy shrinking up to 1 pct in 2009
He said there could be problems with some Spanish banks needing government help although the system overall was healthy.
Spain on Sunday launched its first bank rescue of the global financial crisis to prevent solvency problems at unlisted savings bank Caja Castilla la Mancha (CCM).
Spanish banks' capital and liquidity levels are being worn down by limited access to money markets and soaring debt defaults during Spain's recession.
Spain on Sunday launched its first bank rescue of the global financial crisis to prevent solvency problems at unlisted savings bank Caja Castilla la Mancha (CCM).
Spanish banks' capital and liquidity levels are being worn down by limited access to money markets and soaring debt defaults during Spain's recession.
G20 musters $1.1 trillion to fight global crisis
"Today's agreement begins to crack down on the cowboys in financial markets that have brought global markets undone," Australian Prime Minister Kevin Rudd said.
Some economists said the new IMF funds masked the fact that there was no agreement for more fiscal stimulus actions by individual countries, something the United States, UK and Japan wanted but France and Germany strongly resisted.
In the United States, the Financial Accounting Standards Board voted to give banks more flexibility in valuing toxic assets. The changes, to take effect in the second quarter, could reduce writedowns and soften blows to bank earnings.
But the news on the unemployment front continued to worsen.
The number of U.S. workers filing new claims for jobless benefits rose to their highest level in more than 26 years last week.
Data released in Spain showed the number of people claiming jobless benefits climbed steeply in March and at a much higher rate than larger European economies. Euro zone unemployment jumped more than expected in February to 8.5 percent.
As the ranks of the unemployed grow, so too do their debt loads.
A report by the American Bankers Association, which represents most large U.S. banks and credit card companies, said the percentage of consumer loans at least 30 days late rose to a seasonally adjusted 3.22 percent in the October-to-December period from 2.9 percent in the prior quarter.
Some economists said the new IMF funds masked the fact that there was no agreement for more fiscal stimulus actions by individual countries, something the United States, UK and Japan wanted but France and Germany strongly resisted.
In the United States, the Financial Accounting Standards Board voted to give banks more flexibility in valuing toxic assets. The changes, to take effect in the second quarter, could reduce writedowns and soften blows to bank earnings.
But the news on the unemployment front continued to worsen.
The number of U.S. workers filing new claims for jobless benefits rose to their highest level in more than 26 years last week.
Data released in Spain showed the number of people claiming jobless benefits climbed steeply in March and at a much higher rate than larger European economies. Euro zone unemployment jumped more than expected in February to 8.5 percent.
As the ranks of the unemployed grow, so too do their debt loads.
A report by the American Bankers Association, which represents most large U.S. banks and credit card companies, said the percentage of consumer loans at least 30 days late rose to a seasonally adjusted 3.22 percent in the October-to-December period from 2.9 percent in the prior quarter.
Pakistan faces bankruptcy with $3bn forex reserves
London, Oct 7 (IANS) Pakistan’s foreign exchange reserves are on the brink at a mere $3 billion - enough to buy only a month’s supply of oil and food, a newspaper reported Tuesday.The Daily Telegraph said that on paper the country’s central bank holds $8.14 billion of foreign currency, but if forward liabilities are included, the real reserves may be only $3 billion.
It said Pakistan had $16 billion of foreign exchange nine months ago, but high oil prices “have combined with endemic corruption and mismanagement to inflict huge damage on the economy”.
The report comes after President Asif Ali Zardari told the Wall Street Journal newspaper his country needs a $100 billion bail out package.
“If I can’t pay my own oil bill, how am I going to increase my police? The oil companies are asking me to pay $135 [per barrel] of oil and at the same time they want me to keep the world peaceful and Pakistan peaceful,” Zardari said in an interview published Saturday.
The Daily Telegraph said Pakistan’s efforts to defer payment for 100,000 barrels of oil supplied every day by Saudi Arabia have not yet yielded results, and that the government has failed to raise loans on favourable terms from “friendly countries”.
It said Zardari is expected to ask the international community for a rescue package at a meeting in Abu Dhabi next month.
It said Pakistan had $16 billion of foreign exchange nine months ago, but high oil prices “have combined with endemic corruption and mismanagement to inflict huge damage on the economy”.
The report comes after President Asif Ali Zardari told the Wall Street Journal newspaper his country needs a $100 billion bail out package.
“If I can’t pay my own oil bill, how am I going to increase my police? The oil companies are asking me to pay $135 [per barrel] of oil and at the same time they want me to keep the world peaceful and Pakistan peaceful,” Zardari said in an interview published Saturday.
The Daily Telegraph said Pakistan’s efforts to defer payment for 100,000 barrels of oil supplied every day by Saudi Arabia have not yet yielded results, and that the government has failed to raise loans on favourable terms from “friendly countries”.
It said Zardari is expected to ask the international community for a rescue package at a meeting in Abu Dhabi next month.
Pakistan's forex reserves fall to $10.09 bln
KARACHI, April 2 - Pakistan's foreign exchange reserves fell by $170 million to $10.09 billion in the week ended March 28, the central bank said on Thursday.
The State Bank of Pakistan's reserves fell to $6.63 billion from $6.79 billion a week earlier while reserves held by commercial banks also fell to $3.46 billion from $3.47 billion, the bank said.
Pakistan's foreign reserves hit a record high of $16.5 billion in October 2007 but fell to $6.6 billion in November, largely because of a soaring import bill.
Pakistan agreed in November to an IMF emergency loan package of $7.6 billion to avert a balance of payments crisis.
It got a first tranche of $3.1 billion that month and the central bank said on Thursday a second tranche of $848 million had been received. [ID:nSIN250934]
Separately, Pakistan had received a $500 million interest-free World Bank loan to help stabilise the economy, the central bank said on Tuesday. [ID:nSIN429347]
The $500 million from the World Bank and $848 million from the IMF would be reflected in data released next week.
The State Bank of Pakistan's reserves fell to $6.63 billion from $6.79 billion a week earlier while reserves held by commercial banks also fell to $3.46 billion from $3.47 billion, the bank said.
Pakistan's foreign reserves hit a record high of $16.5 billion in October 2007 but fell to $6.6 billion in November, largely because of a soaring import bill.
Pakistan agreed in November to an IMF emergency loan package of $7.6 billion to avert a balance of payments crisis.
It got a first tranche of $3.1 billion that month and the central bank said on Thursday a second tranche of $848 million had been received. [ID:nSIN250934]
Separately, Pakistan had received a $500 million interest-free World Bank loan to help stabilise the economy, the central bank said on Tuesday. [ID:nSIN429347]
The $500 million from the World Bank and $848 million from the IMF would be reflected in data released next week.
The world's most traded market, trading 24 hours a day
With average daily turnover of US$3.2 trillion, forex is the most traded market in the world.
A true 24-hour market from Sunday 5 PM ET to Friday 5 PM ET, forex trading begins in Sydney, and moves around the globe as the business day begins, first to Tokyo, London, and New York.
Unlike other financial markets, investors can respond immediately to currency fluctuations, whenever they occur - day or night.
A true 24-hour market from Sunday 5 PM ET to Friday 5 PM ET, forex trading begins in Sydney, and moves around the globe as the business day begins, first to Tokyo, London, and New York.
Unlike other financial markets, investors can respond immediately to currency fluctuations, whenever they occur - day or night.
What's Forex?
"Forex" stands for foreign exchange; it's also known as FX. In a forex trade, you buy one currency while simultaneously selling another - that is, you're exchanging the sold currency for the one you're buying. The foreign exchange market is an over-the-counter market.
Currencies trade in pairs, like the Euro-US Dollar (EUR/USD) or US Dollar / Japanese Yen (USD/JPY). Unlike stocks or futures, there's no centralized exchange for forex. All transactions happen via phone or electronic network.
Currencies trade in pairs, like the Euro-US Dollar (EUR/USD) or US Dollar / Japanese Yen (USD/JPY). Unlike stocks or futures, there's no centralized exchange for forex. All transactions happen via phone or electronic network.
Fast-track your forex skills - free of charge.
Before diving into the world's most traded market, FOREX.com invites you to attend a free 90 minute informational seminar, Getting Started in Forex.
Advan
Ability to trade on margin. Access to the FX market can be made using small capital outlays by taking advantage of superior leverage
The FX market is the largest and most liquid in the world
24 hour seamless trading. The FX market is open for a continual 5 1/2 day period allowing you to enter and exit the market at any time
Ability to establish long (opening purchase) and short (opening sale) positions
Superior market transparency. There are no multiple exchange listings of the same instrument
No standard trade sizes exist
No delivery or contract expiry to consider
The FX market is the largest and most liquid in the world
24 hour seamless trading. The FX market is open for a continual 5 1/2 day period allowing you to enter and exit the market at any time
Ability to establish long (opening purchase) and short (opening sale) positions
Superior market transparency. There are no multiple exchange listings of the same instrument
No standard trade sizes exist
No delivery or contract expiry to consider
Ability to trade on margin. Access to the FX market can be made using small capital outlays by taking advantage of superior leverage
The FX market is the largest and most liquid in the world
24 hour seamless trading. The FX market is open for a continual 5 1/2 day period allowing you to enter and exit the market at any time
Ability to establish long (opening purchase) and short (opening sale) positions
Superior market transparency. There are no multiple exchange listings of the same instrument
No standard trade sizes exist
No delivery or contract expiry to consider
The FX market is the largest and most liquid in the world
24 hour seamless trading. The FX market is open for a continual 5 1/2 day period allowing you to enter and exit the market at any time
Ability to establish long (opening purchase) and short (opening sale) positions
Superior market transparency. There are no multiple exchange listings of the same instrument
No standard trade sizes exist
No delivery or contract expiry to consider
What is FX Trading?
Foreign Exchange ('forex' or 'FX') is the simultaneous buying of one currency and selling of another. Currencies are traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY).
For speculators, the best trading opportunities exist with the most commonly traded (and therefore most liquid) currencies, called "the majors." Today, more than 85% of all daily transactions involve trading of the majors, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar.
A true 24-hour market, forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial centre, first to Tokyo then London and finally New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.
The FX market is considered an 'over the counter' (OTC) or 'Interbank' market, due to the fact that transactions are conducted between two counterparties over the telephone or via an electronic network. Trading is not centralised on an exchange, unlike the equities, futures and options markets.
For speculators, the best trading opportunities exist with the most commonly traded (and therefore most liquid) currencies, called "the majors." Today, more than 85% of all daily transactions involve trading of the majors, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar.
A true 24-hour market, forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial centre, first to Tokyo then London and finally New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.
The FX market is considered an 'over the counter' (OTC) or 'Interbank' market, due to the fact that transactions are conducted between two counterparties over the telephone or via an electronic network. Trading is not centralised on an exchange, unlike the equities, futures and options markets.
Big Pippin's Forex Forecast
f you haven't done so already , go check out BabyPips' newest creation, FreshPips.com !
Freshpips.com delivers to your e-door step the most relevant Forex news and research on the Web. The stories you see on FreshPips are submitted by site members – you and your fellow Forex traders. You then decide what's “fresh” and what, well, sucks. Top honors – submissions placed on the main page – are given to the stories deemed fresh by the FreshPips.com community as a whole.
Check it out, register, and start submitting cool Forex stories today!
Freshpips.com delivers to your e-door step the most relevant Forex news and research on the Web. The stories you see on FreshPips are submitted by site members – you and your fellow Forex traders. You then decide what's “fresh” and what, well, sucks. Top honors – submissions placed on the main page – are given to the stories deemed fresh by the FreshPips.com community as a whole.
Check it out, register, and start submitting cool Forex stories today!
Popular pairs in Forex
Without a doubt the EUR/USD and GBP/USD, as currency pairs, receive a great deal of attention by online Forex traders.
Each provides tradable patterns almost every day. Why some traders prefer trading one of these pairs versus the other is almost a matter of personal preference. Both pairs will reflect global sentiment regarding the dollar. As a result, it is usually the case that they will share the same trend patterns.
Each provides tradable patterns almost every day. Why some traders prefer trading one of these pairs versus the other is almost a matter of personal preference. Both pairs will reflect global sentiment regarding the dollar. As a result, it is usually the case that they will share the same trend patterns.
Friday, April 3, 2009
UNRELENTING JOBLESS RISE IMPERILS US RECOVERY (AFP)
AFP - Amid an unrelenting measure of employ losses, the US frugalness faces a vie against the measure as it struggles to better from its poorest give since the Great Depression.
Subscribe to:
Posts (Atom)
