Tuesday August 24, 2021

Pakistan Foreign Exchange Reserves Jumps To $27.4 Billion Dollars

KARACHI:Pakistan’s foreign exchange reserves have jumped to $27.4 billion after the transfer of $2.75 billion dollar by the IMF.

As per the state bank of Pakistan, the country has received $2.75 billion from the International Monetary Fund (IMF).

The country has received 2.75 billion US dollars from the IMF as part of the SDR allocation.

Created in 1969, SDRs are not a currency and have no material existence.

Their value is based on a basket of five major international currencies: the dollar, the euro, the pound, the renminbi or yuan, and the yen.

Once issued, SDRs can be used either as a reserve currency that stabilizes the value of a country’s domestic currency or converted into stronger currencies to finance investments.

For poorer countries, the interest is also to obtain hard currencies without having to pay substantial interest rates.

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