Connect with us

Business News

India Forex Hits Record High as Pakistans Reserves Continues to Plunge



India recorded a lifetime high when foreign exchange reserve touched USD 426.42 billion post-surge by USD 4.215 billion in the week to June 21, RBI data suggested.

Cash-Strapped Pakistan Needs To Pay External Debt of $27 billion By 2021

Indian Forex reserves had last scaled a monumental high of USD 426.028 billion in the week to April 13, 2018. The upscale in reserves was due to an increase in foreign currency asset, a major component of the overall foreign exchange reserves.

In the following week, foreign currency assets increased by USD 4.202 billion to USD 398.649 billion. In terms of US dollars, foreign currency assets are said to involve the impact of appreciation/depreciation of non-US currencies like the euro, pound and yen held in the reserves.

Gold reserves remained unchanged at USD 22.958 billion, said RBI data. The notable change is the Special Drawing Rights with the International Monetary Fund (IMF) which has increased by USD 4.2 million to USD 1.453 billion.

The country’s reserve position with the fund also rose by USD 9.6 million to USD 3.354 billion.

The situation has not been all that rosy across the border with the Pakistani rupees plummeting into the lowest ever. The principal loan from the IMF was not able to hold the currency from its uncontrolled fall. Pakistan’s stock market also declined on Friday, with the benchmark KSE 100 index down 2.4 per cent by 0615 GMT. A market-determined approach by the IMF based on “demand and supply of foreign exchange market” would help bolster the present predicament.

The Khan-led Pakistan government is looking at raised taxes or imposing heavy spending cuts to reduce its ballooning budget deficit at a time when household budgets are increasingly squeezed. Pakistan’s economy is undergoing a common boom-and-bust cycle; debt is soaring, inflation is rocketing, and reserves are falling after a deficit blowout. The IMF has long advocated Pakistan to loosen its grip on the rupee and estimated the real exchange rate was overvalued by as much as 20 per cent in 2017.

Pakistan is now seeing a new wave of tranche from allies with Qatar having 500 million USD, Saudi Arabia and the United Arab Emirates (UAE) pledging aid packages for Pakistan. Riyadh has provided a $3 billion loan while the UAE provided $1 billion. China too had previously flushed the Pakistan market with 2.2 billion USD in forex reserves.




Expert Reviews1 hour ago

Why US-Led Alliance Of Asian Nations – India, Japan & Australia Could Fail To Tame China?

Amidst China’s aggressive advances at land and at sea, the United States led Quadrilateral Security Dialogue (QSD) alliance with India,...

EurAsian Region3 hours ago

Russia, China, Pakistan, Iran Start One Of World’s Most Fiercest Military Drills

Russia launched a major military drill on Monday, involving almost 80,000 servicemen. Kavkaz-2020 (Caucasus-2020) is the final stage of annual...

army-soldiers army-soldiers
Featured3 hours ago

Can India’s Indigenous ‘Lightest Bullet Proof Jacket’ Be A Saviour At LAC Against China?

India has successfully developed an armour jacket for security personnel that is capable of protecting against bullets of different threat...

Chinese-Military-Base-Australia Chinese-Military-Base-Australia
Asia Pacific4 hours ago

China’s 3rd Aircraft Carrier Makes ‘Significant Progress’ Amid Conflict With India, Taiwan

China’s second indigenous aircraft carrier and the third in its fleet, the second Type 002’s construction details have surfaced over...

India-Pakistan ties India-Pakistan ties
Featured4 hours ago

Pakistan Rejects Nomination Of ‘Senior’ Indian Diplomat

Pakistan has rejected the nomination of an Indian diplomat for the post of its Charge d’Affaires in Islamabad, terming him...

Putin-Trump Putin-Trump
EurAsian Region6 hours ago

Escorted By Su-35 Jets, Russian Strategic Bomber Tu-160 Breaks World Record

The Russian Tu-160 strategic bombers broke their own world record by taking a non-stop flight of 25 hours. The previous...

rafale-jets rafale-jets
Featured11 hours ago

Indian Rafale Jets, For The 1st Time, Conduct Sorties Over Ladakh

French-origin Dassault Rafale jets, for the first time known, have commenced conducting ‘familiarization’ sorties over Ladakh as tensions between two...

qatar-saudi qatar-saudi
Featured20 hours ago

Qatar Affirms Its Position On Israel-Palestine Issue; Says Ending Israeli Occupation A Must

Qatar on Sunday said it stands by Palestinians and that the long-standing conflict with Israel should be resolved by addressing...

F-15EX-india F-15EX-india
Featured1 day ago

No More Rafales! Why Indian Air Force Could Reject Second Batch Of Dassault Rafale Jets?

As the Indian Air Force (IAF) looks to further bolster its aerial fleet after the successful acquisition of French Dassault...

Americas1 day ago

US To Re-Impose Biting UN Sanctions On Iran Despite Global Objections

The US will reimpose biting UN sanctions on Iran that were removed as part of a 2015 nuclear pact struck...