Gross foreign reserves down but enough - CB

Central Bank said the gross official reserves, with and without Asian Clearing Union (ACU) funds, recorded US$ 1.48 billion and $ 1.43 billion respectively, by end May 2009. These include deposits of $ 145 million placed with two domestic banks. Based on the previous 12 month average imports ($983 million per month), these reserve values are equivalent to 1.51 and 1.46 months of imports, respectively.
However, Central Bank said, in view of the current and expected low imports, resulting from the sharp reduction in the oil and petroleum product import bills, the actual equivalent number of months of imports would be much higher.
The Bank also said the foreign exchange inflows have also responded favorably to the positive outlook brought about by the end to the three decades of conflict.

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