Forex reserves able to finance only one month of imports

KARACHI: The central bank foreign exchange reserves has plunged down to $4 billion only enough to finance one month worth of imports due to the delay in the receipt of the new tranche of International Monetary Fund (IMF) loan and payback of the old loans, Geo news reported

Sources said that the existing reserves of the central bank further dropped by $380 million left at $3.84 billion only, while the fall in gross reserves recorded by $430 million stood at $9.7 billion.

Economic analysts said that $700 million being repaid to the IMF during the current month, which has triggered a sharp plunge in the forex reserves and the central bank is left with forex only enough to meet the demand for one-month imports. The value of rupee with the fall in forex reserves seen weakening everyday, as the dollar in open market today went up further by paisa 15 to sell at Rs108.75.