Read on Twitter
This is the problem with our anchor,all they need is a camera,mic & a bit of arrogance to make their claim on everything without having the knowledge. @MiftahIsmail is talking pure accountancy term “statistical error” which was used vigorously by @MIshaqDar50 https://twitter.com/nadeemmalik/status/1329720119526887424
Currency swap facility is granted When funding markets in one currency worsen, it becomes difficult for banks outside that currency area to fund their assets tied to this currency since they have no direct access to the foreign CB that issues the currency.
But if their home CB has a swap line with the foreign CB, the home CB (State Bank in our case) can provide its banks with the required liquidity in the foreign currency without using its foreign reserves. That’s not fraud @nadeemmalik ,that’s very much legit.
Your question @nadeemmalik to @MiftahIsmail should’ve been on IMF’s report on Pakistan that claimed, at the end of June 2013 ,58% of total reserves either belonged to commercial banks or China when SBP borrowed $2.3 billion from the banks in short-term forward contracts....
while $871 million was added to the reserves by using a Chinese trade financing facility which was a flawed strategy by @MIshaqDar50 to artificially top up its reserves but for that you need a bit of research on subject before terming it a “fraud” @nadeemmalik .
Had there been some Method to this “Talk Show Spiced Up” madness, next question should’ve been, if @MIshaqDar50 was using Forex swaps on top of issuing bonds way above PR,why our reserves were depleting & if you @nadeemmalik had known,you’d wake up to Keeping PKR stable reality.
