Foreign Exchange is considered as the trading of a certain currency with the other international currency. For Instance, Pak Rupee is traded against the US Dollar. The liquid Markets are the markets with comparatively low transaction costs and abundant buyers & sellers. These markets are the Forex Markets. Foreign Reserves are the reserves of an international currency in the Country’s account.
Pakistan’s liquid foreign exchange reserves surged to $12 billion in the week ending on July 03. According to details, the amount held by the State Bank of Pakistan stood at $12.041 billion.
Liquid Foreign Reserves of Pakistan observed a massive increase at the weekend. At the time, the foreign reserves, reserved in the State Bank of Pakistan are somewhat around $12.041 Billion. However, the Net Foreign Reserves in the commercial banks are mounted around 6.748.5 Billion US Dollars. Apparently, the increase was seen from 811 Million US Dollars to 12.041 Billion US Dollars.
The focal cause of the massive increase in the reserves is due to the loan from China marked with an amount of $1 Billion US Dollars. State Bank of Pakistan has also paid the debts worth around $231.2 Million in this time. The situation, for now, is calm and stable.
The Stability surged for Pakistan Rupee against the US Dollar is the main artefact of this foreign reserve increments. However, the payment of external debts is persistent and properly scheduled. The Economy is dependent on these figures; either outgoing or incoming.