Nigeria’s foreign reserves have dropped by $2. 2 billion amid concerns about the central bank’s support for the Naira and the settlement of over $2 billion foreign exchange backlog. Watch this report for more details!

Nigeria's foreign reserves have fallen $2.2 bn since January

Pakistan’s foreign exchange reserves dropped to their lowest level since October 2019. Sharing a break-up of the foreign reserves position, the central bank said that the reserves held by the State Bank of Pakistan stand at $7.83 billion.

Pakistan's foreign exchange reserves at lowest since October 2019

Sri Lanka is facing their worst economic crisis since gaining independence in 1948 and the government has been trying to implement a number of measures to improve the situation. The past couple of months has seen acute food shortages and inflation which resulted into uproar within the public. Now, the government has decided to reduce the limit of foreign currency that an individual can possess. The limit will reduce from USD 15,000 to USD 10,000 as the country looks to protect its quickly diminishing foreign exchange reserve and try to limit the already record levels of inflation.

Also read |&nbsp;<a href="https://www.wionews.com/world/us-military-plane-endangered-peace-and-stability-after-flying-through-taiwan-strait-says-china-491610" hreflang="en">US plane's Taiwan Strait flyover ‘endangered peace and stability’: China</a>

The forex shortage forced Sri Lanka to default on their international debut in April this year and in order to improve the situation, Minister of Finance Ranil Wickremesinghe issued the order under the Foreign Exchange Act in order to get the forex reserves back into the banking system.

“Reducing the amount of foreign currency retained in possession by a person in, or resident in, Sri Lanka from USD 15,000 to USD 10,000 or its equivalent in other foreign currencies,” an official statement said according to a PTI report.

Also read |&nbsp;<a href="https://www.wionews.com/world/contraception-lgbtq-rights-us-supreme-court-hints-at-next-possible-targets-491704">Contraception, LGBTQ rights: US Supreme Court hints at next possible targets</a>

The people of Sri Lanka have been provided a period of 14 days to deposit the excess foreign currency and after that period, everyone will have to provide a proof of possession. This is a move that was hinted at by Governor of the Central Bank of Sri Lanka Nandalal Weerasinghe.

Sri Lanka are currently in conversation with the International Monetary Fund (IMF) in relation to their loan default and they are also talking with other nations about possible loan options.

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Sri Lanka is facing their worst economic crisis since gaining independence in 1948 and the government has been trying to implement a number of measures to improve the situation.

Sri Lanka is facing their worst economic crisis since gaining independence in 1948 and the government has been trying to implement a number of measures to improve the situation. The past couple of months has seen acute food shortages and inflation which resulted into uproar within the public. Now, the government has decided to reduce the limit of foreign currency that an individual can possess. The limit will reduce from USD 15,000 to USD 10,000 as the country looks to protect its quickly diminishing foreign exchange reserve and try to limit the already record levels of inflation. Also read | US plane's Taiwan Strait flyover ‘endangered peace and stability’: China The forex shortage forced Sri Lanka to default on their international debut in April this year and in order to improve the situation, Minister of Finance Ranil Wickremesinghe issued the order under the Foreign Exchange Act in order to get the forex reserves back into the banking system. “Reducing the amount of foreign currency retained in possession by a person in, or resident in, Sri Lanka from USD 15,000 to USD 10,000 or its equivalent in other foreign currencies,” an official statement said according to a PTI report. Also read | Contraception, LGBTQ rights: US Supreme Court hints at next possible targets The people of Sri Lanka have been provided a period of 14 days to deposit the excess foreign currency and after that period, everyone will have to provide a proof of possession. This is a move that was hinted at by Governor of the Central Bank of Sri Lanka Nandalal Weerasinghe. Sri Lanka are currently in conversation with the International Monetary Fund (IMF) in relation to their loan default and they are also talking with other nations about possible loan options. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Sri Lanka limits forex possession by citizens to support diminishing reserves

Sri Lanka seeks to secure around $5 billion in funding this year to cover repayments for fuel imports and other items bought through credit lines, and another $1 billion to bolster its foreign reserves.

Sri Lanka seeks to secure $5 billion in funds for import payments

Saudi Arabia is finalising the extension of the kingdom's $3 billion deposit to Pakistan, says Saudi Minister of Finance Mohammed al-Jadaan. Last year, Saudi Arabia deposited $3bn in the State Bank of Pakistan to help support its foreign reserves.

Saudi Arabia likely to finalise extension of $3bn deposit to Pakistan

Sri Lanka has defaulted on its debt payments for the first time in its history, a day after the cash-strapped country declared it doesn’t even have&nbsp;money to buy fuel even for one-day.

On Thursday, Sri Lanka’s central bank governor P Nandalal Weerasinghe said that island nation had fallen into a “pre-emptive default” on its debts.

“Our position is very clear, we said that until they come to the restructure [of our debts], we will not be able to pay. So that's what you call pre-emptive default,” Weerasinghe was quoted as saying, according to BBC.

“There can be technical definitions... from their side they can consider it a default. Our position is very clear, until there is a debt restructure, we cannot repay," he added.

Pre-emptive defaults happen when a country&nbsp;fails to meet some or all of its debt payments to creditors. As a result, it&nbsp;damages a country's reputation, making it harder to borrow the money it needs on international markets, which can further harm confidence in its currency and economy.

According to the credit rating agency Moody’s, it is the first default by an Asia-Pacific nation this century.

Last month, Sri Lanka said that it would stop servicing its international debts to wrest the dwindling foreign currency reserves, which are essential for importing key items from overseas.

Watch |&nbsp;Sri Lanka defaults on its debt for first time in history

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It has to repay about $7bn of international loans this year, out of a total foreign debt pile worth $51bn. The country’s finance ministry has said it has $25m in usable foreign reserves.

The island nation is going through its worst economic crisis since independence in 1948.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/sri-lanka-runs-out-of-petrol-how-the-island-nation-lost-the-political-economic-battle-479821" hreflang="en">Explainer | Sri Lanka runs out of petrol: How the island nation lost the plot</a>

Forty-per cent inflation, rising costs of petrol, medicines, cooking gas and other essentials has only put further misery on the people.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/sri-lanka-proposal-to-suspend-parliament-standing-orders-defeated-479787" hreflang="en">Sri Lanka: Proposal to suspend Parliament standing orders defeated&nbsp;</a>

The economic crisis also triggered a political crisis in Sri Lanka, which led to the resignation of the country’s prime minister Mahinda Rajapaksa after violence ensued between protesters and the government supporters.

(With inputs from agencies)

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Sri Lanka has defaulted on its debt payments for the first time in its history, a day after the cash-strapped country declared it doesn’t even have money to buy fuel even for one-day.

Sri Lanka has defaulted on its debt payments for the first time in its history, a day after the cash-strapped country declared it doesn’t even have money to buy fuel even for one-day. On Thursday, Sri Lanka’s central bank governor P Nandalal Weerasinghe said that island nation had fallen into a “pre-emptive default” on its debts. “Our position is very clear, we said that until they come to the restructure [of our debts], we will not be able to pay. So that's what you call pre-emptive default,” Weerasinghe was quoted as saying, according to BBC. “There can be technical definitions... from their side they can consider it a default. Our position is very clear, until there is a debt restructure, we cannot repay," he added. Pre-emptive defaults happen when a country fails to meet some or all of its debt payments to creditors. As a result, it damages a country's reputation, making it harder to borrow the money it needs on international markets, which can further harm confidence in its currency and economy. According to the credit rating agency Moody’s, it is the first default by an Asia-Pacific nation this century. Last month, Sri Lanka said that it would stop servicing its international debts to wrest the dwindling foreign currency reserves, which are essential for importing key items from overseas. Watch | Sri Lanka defaults on its debt for first time in history It has to repay about $7bn of international loans this year, out of a total foreign debt pile worth $51bn. The country’s finance ministry has said it has $25m in usable foreign reserves. The island nation is going through its worst economic crisis since independence in 1948. Also read | Explainer | Sri Lanka runs out of petrol: How the island nation lost the plot Forty-per cent inflation, rising costs of petrol, medicines, cooking gas and other essentials has only put further misery on the people. Also read | Sri Lanka: Proposal to suspend Parliament standing orders defeated The economic crisis also triggered a political crisis in Sri Lanka, which led to the resignation of the country’s prime minister Mahinda Rajapaksa after violence ensued between protesters and the government supporters. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

For the first time, Sri Lanka defaults on its payments

Sri Lanka's foreign reserves have tumbled to $2.8 billion. The government does not have money to import food for its people. How will the cash-strapped nation settle its $3 billion loan? Is more borrowing the only option? Palki Sharma tells you.

Gravitas: Food crisis in Sri Lanka as Chinese debt mounts

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