CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Foreign Exchange Reserves and Exchange Rate
For competitive-exam preparation, which option correctly identifies Export receipts are a source of?
A. Population growth
B. Foreign exchange inflows
C. Only domestic tax arrears
D. Provincial borrowing
Correct Answer: B
Exports earn foreign currency and support external receipts.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Foreign Exchange Reserves and Exchange Rate
For competitive-exam preparation, which option correctly identifies Import payments create demand for?
A. Provincial bonds only
B. Only domestic coins
C. Foreign currency
D. Land revenue
Correct Answer: C
Importers generally need foreign currency to pay overseas suppliers.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Foreign Exchange Reserves and Exchange Rate
For competitive-exam preparation, which option correctly identifies A flexible exchange rate is primarily determined by?
A. Foreign exchange market demand and supply
B. Provincial assemblies alone
C. A fixed constitutional article
D. Population census
Correct Answer: A
Under a flexible regime, market demand and supply play the central role, though central banks may intervene.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Foreign Exchange Reserves and Exchange Rate
For competitive-exam preparation, which option correctly identifies The spread between an exchange-rate bid and offer is?
A. Policy-rate corridor
B. Fiscal deficit
C. Difference between buying and selling quotations
D. Difference between exports and imports
Correct Answer: C
Bid-offer spread is the difference between quoted buying and selling rates.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Foreign Exchange Reserves and Exchange Rate
For competitive-exam preparation, which option correctly identifies A large external debt repayment, other things equal, can?
A. Raise provincial share
B. Increase exports by law
C. Reduce official reserves
D. Increase reserves automatically
Correct Answer: C
External debt repayments require foreign currency and can reduce reserves unless offset by inflows.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Foreign Exchange Reserves and Exchange Rate
For competitive-exam preparation, which option correctly identifies An IMF disbursement received by Pakistan can directly?
A. Eliminate imports
B. Reduce the population
C. Change the NFC formula automatically
D. Increase official foreign exchange reserves
Correct Answer: D
External financing disbursements can raise SBP's official reserve assets when received.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Foreign Exchange Reserves and Exchange Rate
For competitive-exam preparation, which option correctly identifies NEER stands for?
A. Nominal Effective Exchange Rate
B. National External Exchange Reserve
C. Nominal Economic Equity Rate
D. Net Effective Export Ratio
Correct Answer: A
NEER is a trade-weighted index of a currency against a basket of currencies without inflation adjustment.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Foreign Exchange Reserves and Exchange Rate
For competitive-exam preparation, which option correctly identifies REER stands for?
A. Reserve Exchange Equilibrium Ratio
B. Real External Export Rate
C. Real Effective Exchange Rate
D. Regional Effective Economic Reserve
Correct Answer: C
REER is the Real Effective Exchange Rate, an inflation-adjusted trade-weighted exchange-rate index.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Foreign Exchange Reserves and Exchange Rate
For competitive-exam preparation, which option correctly identifies Foreign exchange reserves are most directly used to help meet?
A. Provincial land revenue
B. Local property taxes
C. External payment obligations
D. Domestic census costs
Correct Answer: C
Reserves provide foreign-currency liquidity for external obligations and market confidence.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Foreign Exchange Reserves and Exchange Rate
For competitive-exam preparation, which option correctly identifies Workers' remittances enter Pakistan's balance of payments mainly under?
A. Monetary base
B. Capital account only
C. Current account
D. Government budget account
Correct Answer: C
Workers' remittances are recorded in the current account as secondary income under BPM6.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Foreign Exchange Reserves and Exchange Rate
For competitive-exam preparation, which option correctly identifies A current account surplus, other things equal, tends to?
A. Reduce tax revenue to zero
B. Eliminate all public debt
C. Abolish exchange-rate risk
D. Support foreign exchange reserves
Correct Answer: D
A current account surplus can add to foreign exchange availability and support reserve accumulation.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Foreign Exchange Reserves and Exchange Rate
For competitive-exam preparation, which option correctly identifies Appreciation of the Pakistani rupee against the US dollar means?
A. Imports become legally prohibited
B. Reserves must become zero
C. Fewer PKR are needed to buy one USD
D. More PKR are needed to buy one USD
Correct Answer: C
Appreciation means the rupee gains value against the dollar.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Foreign Exchange Reserves and Exchange Rate
For competitive-exam preparation, which option correctly identifies Depreciation of the Pakistani rupee against the US dollar means?
A. The policy rate must fall
B. Exports automatically decline
C. Fewer PKR are needed to buy one USD
D. More PKR are needed to buy one USD
Correct Answer: D
Currency depreciation means the domestic currency loses value relative to the foreign currency.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Foreign Exchange Reserves and Exchange Rate
For competitive-exam preparation, which option correctly identifies An exchange rate expressed as PKR per US dollar means?
A. Dollars required to buy one rupee
B. Gold price per rupee
C. Interest rate on dollars
D. Rupees required to buy one US dollar
Correct Answer: D
PKR/USD quotations commonly show how many rupees are required for one US dollar.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Foreign Exchange Reserves and Exchange Rate
For competitive-exam preparation, which option correctly identifies A rise in foreign exchange reserves generally improves?
A. Population growth
B. External payment capacity
C. Provincial tax autonomy
D. Fiscal devolution
Correct Answer: B
Higher reserves generally strengthen the capacity to meet external payment obligations and absorb shocks.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Foreign Exchange Reserves and Exchange Rate
For competitive-exam preparation, which option correctly identifies Institution responsible for Pakistan's monetary policy and official reserve management?
A. Pakistan Bureau of Statistics
B. Federal Board of Revenue
C. State Bank of Pakistan
D. Ministry of Commerce
Correct Answer: C
SBP is Pakistan's central bank and manages monetary policy and official foreign exchange reserves.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Foreign Exchange Reserves and Exchange Rate
For competitive-exam preparation, which option correctly identifies USD/PKR M2M revaluation rate on 29 September 2026?
A. 277.2649
B. 276.8398
C. 277.1214
D. 275.5000
Correct Answer: C
The M2M revaluation rate displayed by SBP was 277.1214.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Foreign Exchange Reserves and Exchange Rate
For competitive-exam preparation, which option correctly identifies USD/PKR weighted average offer rate on 29 September 2026?
A. 277.2649
B. 278.5000
C. 276.8398
D. 277.1214
Correct Answer: A
The weighted average offer rate was 277.2649 on 29 September 2026.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Foreign Exchange Reserves and Exchange Rate
For competitive-exam preparation, which option correctly identifies USD/PKR weighted average bid rate on 29 September 2026?
A. 276.8398
B. 277.1214
C. 276.0000
D. 277.2649
Correct Answer: A
SBP showed a weighted average customer bid rate of 276.8398 on 29 September 2026.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Foreign Exchange Reserves and Exchange Rate
For competitive-exam preparation, which option correctly identifies SBP overnight repo floor rate in late September 2026?
A. 9.5%
B. 11.5%
C. 10.5%
D. 12.5%
Correct Answer: C
The floor rate was 10.5% p.a.