Assignment Of Financial Institutions

Topic:"Forex Reserves"

Submitted To:Sir AB Khan

Submitted From:Aleena Zulfiqar

Roll No:23

MSC(Accounting and Finance) 4th Semester

Department Of Commerce

Bahaudin Zakriya University

 FOREX RESERVES
INTRODUCTION

What Are Foreign Exchange Reserves?

Foreign exchange reserves are assets held on reserve by a central bank in foreign currencies, which
can include bonds, treasury bills and other government securities. Most foreign exchange reserves
are held in U.S. dollars, with China being the largest foreign currency reserve holder in the world.

Why we keep Forex Reserves

 It is important because it helps a country to pay its import bills towards imported goods
and services by its citizens or companies.
 Forex reserves are important to indicate the ability of a country to repay the Foreign Debt.
 During time of any crisis Forex Reserves come to rescue any country so as to absorb the
distress related to such crisis.
 Increase the confidence in the monetary and exchange rate policies of the government.
 Enhances the capacity of the Central bank.

Pakistan Forex Reserves Rate ?

Foreign Exchange Reserves in Pakistan increased to 15423.80 USD Million in October from
15228.30 USD Million in September of 2019.

Foreign Exchange Reserves in Pakistan averaged 15920.18 USD Million from 1998 until 2019,
reaching an all time high of 24025.80 USD Million in October of 2016 and a record low of 1973.60
USD Million in December of 1999.

Where Forex Reserves are kept .?

Under State bank of pakistan.