KARACHI: Analysts are surprised over the sudden move of the State Bank of Pakistan (SBP) for revising Cash Reserve Requirement (CRR) and they termed the measures to control overheating in the economy.
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Get the latest State Bank of Pakistan (SBP) news, monetary policy updates, exchange rates, banking regulations, and economic insights.
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Dollar falls to Rs174.73 at interbank opening
KARACHI: The dollar declined by Re1 against the Pak Rupee (PKR) at the opening in the interbank foreign exchange market on Monday. The dollar is being traded at Rs174.73 at the time of reporting this news article.
The foreign currency made a non-stop gain during the last week. This gain resulted in a fall in rupee value to the record low of Rs175.73 on November 12, 2021, in the interbank foreign exchange market.
Market experts said that the latest recovery in the rupee was due to measures taken by the State Bank of Pakistan (SBP) a day earlier.
The SBP on Sunday, November 14, 2021, decided to increase the average Cash Reserve Requirement (CRR), to be maintained during a period of two weeks by scheduled banks, from 5 percent to 6 percent and minimum CRR to be maintained each day from 3 percent to 4 percent.
CRR is the amount of money that banks are required to keep with the State Bank of Pakistan and is applicable on demand liabilities and time liabilities with tenor of less than a year.
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Pakistani workers send $2.52 billion in October 2021
KARACHI: Pakistani workers living abroad have sent $2.52 billion as remittances to their homeland in the month of October 2021, State Bank of Pakistan (SBP) said on Sunday.
The SBP said that the workers’ remittances continued their strong streak as inflows recorded $2.5 billion in October 2021, up 10.2 percent (y/y) and only marginally lower compared to last month (5.7 percent).
In addition to remaining above $2 billion since June 2020, this is the eighth consecutive month when remittances have been close to or above $2.5 billion.
On a cumulative basis, remittances have risen to $10.6 billion during the first four months of FY22 (July-October 2021), which is 11.9% higher than the same period last year.
Remittance inflows during the first four months of FY22 have mainly been sourced from Saudi Arabia ($ 2.7 billion), UAE ($ 2.0 billion), UK ($ 1.5 billion) and USA ($ 1.1 billion).
Proactive policy measures by the Government and SBP to incentivize the use of formal channels and altruistic transfers to Pakistan amid the pandemic have positively contributed towards the sustained improvement in remittance inflows since last year.
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State Bank enhances CRR 6% to ease pressure on PKR
KARACHI: State Bank of Pakistan (SBP) on Saturday enhanced the cash reserves requirement (CRR) for banks to 6 per cent in order to ease pressure on Pak Rupee (PKR).
The SBP decided to increase the average (CRR), to be maintained during a period of two weeks by scheduled banks, from 5 percent to 6 percent and minimum CRR to be maintained each day from 3 percent to 4 percent.
CRR is the amount of money that banks are required to keep with State Bank of Pakistan and is applicable on demand liabilities and time liabilities with tenor of less than a year.
Time liabilities with tenor of more than one year shall continue to be exempted from maintenance of cash reserves.
With the economy recovering briskly from last year’s acute Covid shock, there is a need to gradually normalize policy settings, including the growth of monetary aggregates.
In recent months, real money supply growth has drifted above its trend. Today’s measure will moderate this growth as well as domestic demand, thereby helping to sustain the current economic recovery, achieve the government’s medium-term inflation target, and reduce pressures on the Pak Rupee (PKR).
In addition, this measure is likely to have positive impact on deposit mobilization as the banks would be encouraged to generate more deposits to cope with additional liquidity requirements for their operations.
This would incentivize banks to offer better returns on deposits to attract these funds; thus serving the SBP objective of encouraging savings.
It may also be highlighted that waiver of CRR on Time liabilities with tenor more than a year will encourage banks to raise more long-term deposits, which will facilitate asset-liability matching and enable banks to extend long term loans for construction and housing financing.
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KIBOR rates on November 12, 2021
KARACHI: State Bank of Pakistan (SBP) on Friday issued the following Karachi Interbank Offered Rates (KIBOR) on November 12, 2021.
Tenor BID OFFER 1 – Week 7.25 7.75 2 – Week 7.30 7.80 1 – Month 7.40 7.90 3 – Month 8.40 8.65 6 – Month 8.67 8.92 9 – Month 8.97 9.47 1 – Year 9.15 9.65 -
SBP issues customers exchange rates for November 12
KARACHI: The State Bank of Pakistan (SBP) on Friday issued customers’ exchange rates for November 12, 2021. The exchange rate is on the basis of weighted average rates of commercial banks.
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Foreign exchange reserves slightly up to $24.026 billion
KARACHI: Pakistan’s foreign exchange reserves have increased by $100 million to $24.026 billion by the week ended November 05, 2021, as compared with $23.926 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.
The official foreign exchange reserves of the central bank increased by $126 million to $17.326 billion by the week ended November 05, 2021when compared with $17.2 billion a week ago.
Meanwhile, the foreign exchange reserves held by the commercial banks fell by $26 million to $6.7 billion by week ended November 05, 2021 as compared with $6.726 billion a week ago
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KIBOR rates on November 11, 2021
KARACHI: State Bank of Pakistan (SBP) on Thursday issued the following Karachi Interbank Offered Rates (KIBOR) on November 11, 2021.
Tenor BID OFFER 1 – Week 7.25 7.75 2 – Week 7.30 7.80 1 – Month 7.40 7.90 3 – Month 8.39 8.64 6 – Month 8.66 8.91 9 – Month 8.95 9.45 1 – Year 9.14 9.64 -
Baqir meets governors of Saudi, Indonesia central banks
KARACHI: Dr. Reza Baqir, Governor, State Bank of Pakistan (SBP) on Thursday met the Governors of Saudi Central Bank (SCB) and Bank Indonesia (BI) on the sidelines of the 15th Islamic Finance Services Board (IFSB) Summit 2021, hosted by the Saudi Central Bank, in Jeddah.
In separate meetings with the two Governors, various topics of mutual interest related to Islamic Banking, digitalization, open banking, and financial inclusion were discussed.
The Governors shared the vision that digital transformation could play a pivotal role in the expansion of Islamic Finance and help in improving financial inclusion. In the meeting with the Saudi Central Bank Governor, Dr. Baqir thanked the Saudi authorities for the financial support they had recently announced for Pakistan in the form of a deposit at the SBP and oil financing.
Dr. Baqir briefed the Governors of the Saudi Central Bank and Bank Indonesia about the recent initiatives of SBP in the areas of Islamic banking, digitalization, financial inclusion and low-cost housing finance.
While talking about digitalization of the financial sector he said that digitalization is a means to achieve the broader objective of making the financial sector more productive, efficient, and inclusive.
Governor SBP especially highlighted that digitization offers the highest potential to accelerate the pace of financial inclusion. Technology driven solutions are the key to open doors of the financial sector for the unserved and underserved segments of the society, particularly the women.
The Governors also shared their experiences during Covid-19 pandemic. Governor SBP apprised them about the various measures taken by the Government of Pakistan to successfully contain the spread of Covid in Pakistan. He also shared the measures taken by SBP to inject liquidity in the economy and banking sector during Covid that helped save jobs as the country went into a locked down situation.
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SBP issues customers exchange rates for November 11
Karachi, November 11, 2021 – The State Bank of Pakistan (SBP) has unveiled the official exchange rates for customers, applicable as of November 11, 2021.
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