Foreign investors return to market, inflow of $200 mln in T-bills has been recorded

April 20, 2020 (MLN): Contrary to the prevailing practice of escaping from the local debt market, after a month, foreign investors invested $200.36 million in government denominated T-bills on Friday i.e. April 17, 2020, the day after the MPC in its emergency meeting slashed policy rate by further 200 bps to 9%.

This inflow of hot money has been recorded from UK investors, bringing the net inflow in T-bills for the day to clock in at $190.57 million after subtracting $9.78 worth of outflows.

The total net inflow for the day stood at $185.8 million, as an outflow of $9.78 has been witnessed by foreign investors against the inflow of $1.08 million in domestic equities.

According to the daily SCRA data released by SBP, after incorporating the latest influx, the country witnessed an inflow of $3.63 billion from Fiscal year to date, out of which $2.62 billion has been withdrawn by foreigners so far from T-bills, indicating that $1 billion worth of investment still parked in government’s short-term debt instrument (T-bills).

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