Pak forex reserves bulge, as tranches received

Updated at: 2212 PST, Thursday, October 08, 2009
KARACHI: Pakistan’s foreign exchange reserves swelled owing to the loan tranches of $410 million from Asian Development Bank (ADB) and World Bank (WB), Geo News reported Thursday.

Talking to Geo News, the spokesman of State Bank of Pakistan (SBP) Syed Wasimud Din said the national forex reserves surged to the level of $14.74 billion with an addition of $257.7 million within the week ending on October 3.

Of these reserves, the central bank has $11.16 billion and commercial banks have $3.58 billion.

Syed Wasim said Pakistan received tranches of a total of $410 billion from Asian Development Bank (ADB) and World Bank (WB) in the last trading week.

Defination

It is a system under which commercial nation pay off their debts.

It can be defined as the system of foreign bills of exchange under foreign payments are made.

Blank and Daniel define it as:
"The term foreign exchange refers to funds available for use in international transactions and may include foreign currency, deposits in foreign banks, and may include foreign currency, deposits in foreign banks, and other liquid, short term financial claims payable in foreign currencies"