The country’s liquid foreign exchange reserves continue their downward journey and shrank by 0.54 per cent to $16.884 billion during the week that ended on the 25th of last month. Last week, the country held $16.961 billion, $77 million more than what the country holds now. State Bank reported that the review week saw the bank possessing $ 13.122 billion against $13.202 billion of last week. This shows a decrease of 0.6 per cent or $80 million, central bank said. On the other hand, the commercial banks’ holding of the greenback surged slightly by $4 million or 0.1 per cent to $3.762 billion compared to previous week’s $3.758 billion.
Analysts said decline in country’s foreign reserves were due to import payments and retirement of external debts that have accumulated to $62 billion. About nominal increase in the banks’ reserves, analysts said it was because of increased deposits backed by the ongoing downing spree of rupee against the greenback especially on inter-bank market. State bank spokesman also attributes such ups and downs in country’s foreign exchange reserves to growth in the banks’ deposits and withdrawals and routine debt servicing.