Foreign investment in treasury bills reaches a record high of $712.8 million

Investment from the UK, UAE, and the US was $181.6m, $88.7m and $8.8m respectively until November 13.

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  • During the first two weeks of November, T-Bills intrigued $278 but the investment was mostly from the UK and US.
  • The maximum investment from the US was $390.8m, whereas the UK approached $317.9m.

Treasury bill is a short-term U.S. rule debt commitment backed by the Treasury Department with a maturity of one year or less. Pakistan’s foreign investment in treasury bills reached a new high of $712.8 million in the first four months of this fiscal year.

SBP Report

Recently, data of the State Bank of Pakistan shows investment in government’s Treasury bills. The economic division concluded that foreign investors show greater interest in government papers that reflect their determination in the fiscal reforms being implemented in the country

On November 6, the cut-off yield for three months security was 13.28% and for six-month securities was 13.29% during the last auction of T-bills.

Exclusive investment from the US & UK

During the first two weeks of November, T-Bills intrigued $278 but the investment was mostly from the UK and US.

The maximum investment from the US was $390.8m until November 13, whereas the collective amount from the UK approached $317.9m. Entire inflows of $712.8m, both accounted for $708.7m.

Inflows from the UAE in the period amounted to $19.5m whereas $8m came from Luxemburg.

Investment from the UK, UAE, and the US was $181.6m, $88.7m and $8.8m respectively until November 13.

Offshore investment

Offshore investment increases the confidence of the equity market with the benchmark index going up, the inflow of foreign investment benefits the country to promote its offshore exchange inventory.

During the press conference, Dr. Reza Baqir, state bank governor denied that offshore investment in T-bills would go down once the interest. He assumed that most of the investors might leave but they will return as the economy acquires stability.

During the first quarter of FY20, foreign direct investment data declared that inflows falling by 3.1 percent to $542m


Also See:

Hot Money Getting Hotter In Pakistan: T-Bills Stood At $327 Million In Sep

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