Foreign Currency deposits remain stagnant in January

February 22, 2019 (MLN):  Foreign Currency Deposits during the month of January  2020 stood at $7.6 billion, increased marginally as compared to deposits recorded in January 2019.

While on a month-on-month basis, it remained the same, revealed State Bank of Pakistan (SBP) data on foreign currency deposits and its utilizations released today.  

The lacklustre growth in foreign currency deposits is mainly associated with PKR stability, as investors are reluctant to convert their savings into dollar deposits to evade the negative impact of PKR appreciation.

According to the data, foreign currency deposits by Residents stood at $6.778 billion during the month under review which was weakened marginally both on a monthly basis and yearly basis.

As these deposits help to finance large fiscal and external current account deficits, during the month $549 million has been utilized to finance country’s exports whereas, $664 million has been utilized for import financing.

Further, $1.48 billion has been placed with SBP, while $54 million and $564 million placed within Pakistani banks and outside Pakistan respectively.

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