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  • Ishaq Dar believes his attempts to revive economy could even ‘surprise IMF’

    Ishaq Dar believes his attempts to revive economy could even ‘surprise IMF’

    Canada Global (Web News) Ishaq Dar, the finance minister, claimed on Wednesday that his team handled the current economic crisis in a way that the International Monetary Fund (IMF) could be surprised.

    Speaking at a Federal Board of Revenue (FBR) ceremony, he noted that Pakistan was predicted to soon fail because of macroeconomic instability before the 2013 elections. He continued, “Pakistan handled the situation back then and would handle it now as well.

    He continued by saying that Pakistan had finished the technical portion of the IMF’s ninth evaluation and regretted that it had only begun three months earlier. He continued, “We have fulfilled all previous requirements.

    Mr. Dar claimed that specific current account deficit predictions were used by the IMF in their calculations and added that Pakistan would not go into default. “Pakistan only completed one IMF programme and that too in 2013-16,” he continued.

  • Bank of Canada holds key rate for the first time in more than a year

    Bank of Canada holds key rate for the first time in more than a year

    Canada Global (Web News) Wednesday’s decision by the Bank of Canada to maintain its benchmark interest rate was its first since more than a year of swift increases intended to contain inflation.

    The policy rate of the central bank is at 4.5 percent.

    The pause comes after eight straight rises saw the benchmark rate rise by 425 basis points since March 2 of last year, as was largely anticipated by economists. The central bank undertook one of the fastest rate tightening cycles in its history in hopes of tamping down rampant inflation.

    The annual inflation rate in Canada has decreased from highs of 8.1% in mid-2022 to 5.9% as of January.

    Although the labour market in Canada is still tight, the country’s economy has also shrunk dramatically.

    After announcing a quarter-point increase in interest rates in January, the governors of the Bank of Canada said that the economy may be prepared for a “conditional pause” as the rate increases to this point take effect since it had achieved sufficient headway against inflation.

    At the time, policymakers stated that in order to begin raising interest rates, they would need to see a “accumulation of evidence” showing inflation was not moving in the direction predicted.

  • Saudi Arabia deposits $5 bln in Turkey’s central bank – statement

    Saudi Arabia deposits $5 bln in Turkey’s central bank – statement

    Canada Global (Web News) The Saudi Fund for Development (SFD) said on Monday that Saudi Arabia and Turkey have struck an agreement for Saudi Arabia to deposit $5 billion into Turkey’s central bank.
    Mohammed Bin Abdullah Al-Jadaan, the Saudi Arabian minister of finance, said in December that his nation will make the deposit.

    Despite increasing from just over $6 billion last summer, when they were at their lowest in at least 20 years, Turkey’s net foreign exchange reserves have lost about $8.5 billion since a devastating earthquake struck the country’s southern region early in February. The earthquake claimed more than 45,000 lives and left millions homeless.

    Net international reserves held by the Turkish Central Bank decreased by $1.4 billion to $20.2 billion in the week ending February 24, according to statistics released by the bank on Thursday.

    The Saudi deposit comes in the wake of coordinated attempts by Ankara and Riyadh to repair relations that were strained following the murder of Saudi journalist Jamal Khashoggi in 2018 at the country’s consulate in Istanbul.

    Due to market interventions and the fallout from a currency crisis in December 2021, Turkey’s foreign exchange holdings have fallen precipitously in recent years. In comparison to the dollar, the lira lost almost 30% of its value in 2016 and 44% in 2021.

  • IMF team to visit Pakistan from Jan 31 for 9th review discussion

    IMF team to visit Pakistan from Jan 31 for 9th review discussion

    Canada Global (Web News) The IMF’s resident representative said on Thursday that an IMF mission would visit Pakistan later this month to talk about the nation’s continuing loan program’s ninth review, which has stalled.

    To continue the negotiations under the ninth EFF review, an in-person Fund mission is slated to visit Islamabad from January 31 through February 9 at the invitation of the authorities, according to a message from Esther Ruiz Perez to Reuters.

    According to the IMF official, the mission would concentrate on steps to restore internal and international sustainability, including bolstering the fiscal position with long-lasting and effective policies while providing aid to the weak and flood victims.

    The representative stated that the Fund would also talk about measures to improve the power sector’s viability, stop the growth of circular debt, and restore the forex exchange market’s appropriate operation so that the exchange rate can correct the forex shortfall.

    In order to reduce the current high level of uncertainty that weighs on the outlook, increase Pakistan’s resilience, and secure the financing support from official partners and the markets that is necessary for Pakistan’s sustainable development, the IMF official said that stronger policy efforts and reforms are essential.

    The incident occurred a day after Pakistan assured the US that it remained committed to the International Monetary Fund (IMF) programme. Pakistan’s reserves have dropped to barely enough to cover a half-worth month’s of imports after paying a fresh $500 million debt repayment.

    Government releasing its control over the rupee-dollar exchange rate in accordance with an IMF requirement, the Pakistani rupee plunged by Rs24.11 (or 9.45%) to an all-time low of Rs255 versus the US dollar in the interbank market.

    Status of the IMF programme was discussed by both parties during the meeting.

  • Dar rejects impression of taking over commercial banks forex reserves

    Dar rejects impression of taking over commercial banks forex reserves

    Canada Gloabl (Web News) Finance and Revene Minister Ishaq Dar clarified on Wednesday that the government will not seize foreign currency held by commercial banks, claiming that his previous statement about the country’s reserves had been twisted by certain sections.

    “My comment was largely misunderstood because nothing of the sort will happen,” he said at a press conference alongside Prime Minister Shehbaz Sharif and other ministers.

    The minister was forced to clarify a few days later after telling an interviewer that Pakistan’s foreign exchange reserves totaled $10 billion – a much higher figure than the central bank’s $5.6 billion reserves as of December 30, 2022, because dollars held by commercial banks also belonged to the country.

    Fears were raised by the finance minister’s statement that the government would seize money from private banks.

    Dar explained that before 1999, private banks were prohibited from holding foreign currency and had to deposit all incoming funds with the State Bank of Pakistan (SBP).

    Ishaq Dar, the minister of finance, stated that a three-year time period had been set for the restoration phase.

    He stated that monies for this purpose will also come from the development budgets of the federal and provincial governments.

    Ishaq Dar claimed that a thorough discussion with the IMF had taken place regarding the nation’s economic situation.

  • Bank of Canada suffers  first loss in history: $522 million

    Bank of Canada suffers  first loss in history: $522 million

    Canada Global (Web News) Bank of Canada lost 522 million dollars in the third quarter of this year. This is the biggest loss for the bank in its 87-year history.
    The central bank’s quarterly financial report said interest income from its assets could not keep pace with interest charges on deposits at the bank, leading to losses. Bank of Canada’s sharply improved interest rates this year also increased the cost of interest charges on settlement balance deposits in accounts at other major banks. Meanwhile, the central bank’s yield from government bonds remained flat.
    The Bank of Canada was able to dramatically increase its assets under the government’s bond purchasing program.

    This policy was part of the central bank’s efforts to get the economy back on track. Due to the expansion of this property, the burden on the central bank has increased and the bank has to pay off the government bonds by establishing a settlement balance.

    The Bank of Canada’s biggest loss in its 87-year history was $522 million