Dmytro Kharkov

Pakistan needs reserves but swap use may be limited, Brad Setser notes

Pakistan needs reserves but swap use may be limited, Brad Setser notes
Pakistan may face swap payment limits

Brad Setser questions whether Pakistan would face restrictions if it tries to use a U.S. currency swap to pay its various Chinese state creditors.

He highlights that while Pakistan needs to boost its reserves, there may be unresolved issues about how such swaps would function for specific payments.

Setser has previously noted that European leaders see current trade relations with China as unsustainable. He also reported on sharp declines in German auto exports to China, risking around 0.6 percentage points of GDP. These developments add context to growing concerns about payment imbalances and external reliance linked to China.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
Weekly Top Bonuses
up to $2,500
deposit bonus for all clients
CLAIM BONUS
Your capital is at risk.