Forex crowding out
THE State Bank of Pakistan (SBP) has successfully rebuilt foreign exchange reserves over the last three years. Much of this success, however, has been purchased by drawing liquidity directly out of the forex market. It attributes its purchases to improved market liquidity and describes their purpose as strengthening external buffers and the capacity to meet external obligations. These are…
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Forex crowding out (opens Dawn in a new tab)
THE State Bank of Pakistan (SBP) has successfully rebuilt foreign exchange reserves over the last three years. Much of this success, however, has been purchased by drawing liquidity directly out of the forex market. It attributes its purchases to improved…
