KARACHI (AFP) — Pakistan's central bank moved to inject liquidity into the country's struggling financial system on Saturday by cutting the amount of cash commercial banks must hold in reserve.
The bank lowered the cash reserve ratio two percentage points to six percent, and said it would be cut to five percent on November 15, as it sought to ease tight credit conditions that have hit economic demand around the globe.
Shamshad Akhtar, governor of the State Bank of Pakistan (SBP), said the move would inject 180 billion rupees (2.2 billion dollars) into the system and that the overall package would total 270 billion rupees.
"The State Bank will monitor the liquidity flow after the injection of massive liquidity into the banking system," she said.
"We would like judicious use of liquidity," she said, adding Pakistan's banking sector was "quite resilient and fully capable of withstanding market shocks and adverse macro economic conditions."
For more on this article, please click on the following link: Pakistan central bank cuts cash ratio to inject liquidity: AFP
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1 comment:
A year ago in Pakistan, I had an opportunity to discuss this thing called liquidity, with a gentle man named Asif Beg. And I predicted this current crisis, of course him being a man of finance, he thought of me a fool.
As long as the rich do not pay taxes, and governments are forced print money to support themselves problems of poverty, unemployment, hunger etc. can not be resolved.
The rich do not create jobs to support the poor. rich create jobs to steal money from the government, at time through the poor, when a government prints money to stay in power. In the long run chaos is inevitable. It is evident in Pakistan today as it is evident here in the United States, with unrest and hyper inflation to follow.
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