Central Banking

Pakistan moves to ease banks' liquidity crisis

Pakistan's central bank on Dec 22 asked commercial banks to buy government securities against swap dollar deposits in an attempt to ease a liquidity crisis and meet a key donor condition, bankers said.

A spokesman for the State Bank of Pakistan told reporters that banks had been asked to buy two-week government treasury bills from the rupee equivalent of institutional swap dollar deposits which were placed with the central bank since 1998. He said the move had been launched to ease a rupee liq