Outflow of forex from T-bills rises sharply

The outflow of foreign investment through treasury bills shot up to $61 million during the first nine days of this month, while the inflow was just $8.14m in the same period. The inflows of foreign investments had increased in the last quarter of the previous fiscal year (FY24), improving the country’s investment climate, particularly for foreign investors. According to analysts, since investors had already earned profit through higher yields, they left the country fearing a lower spread. However, others attributed the outflow to the early maturity of three-month t-bills. July FY25 was encouraging for investment in t-bills as it rose to $271m, but the sudden drop in August was a setback for the financial market. The inflow of dollars has always been a serious concern for the country as well as the financial market.