SBP Reserves Plunge by $846 Million Due to External Debt and Other Payments

Foreign reserves held by the State Bank of Pakistan (SBP) witnessed a substantial outflow of $846 million in the third week of 2022 that ended on January 21, 2022.

The central bank’s weekly report released on Thursday revealed that the country’s total liquid foreign exchange reserves went down on January 21, 2022, to $22.48 billion, compared to $23.35 billion in the previous week. SBP’s reserves fell by $846 million to $16.19 billion during the week under review, compared to $17.03 billion on January 14.

Meanwhile, the net foreign reserves held by the commercial banks stood at $6.292 billion, depicting a decline of $22 million on a weekly basis.

According to the central bank, the decrease in the reserve position is due to external debt and various payments.

Meanwhile, the Pakistani Rupee (PKR) reversed losses against the US Dollar (USD) in the interbank market. It held out against the dollar, gained Rs. 1.53 against the Australian Dollar (AUD), Rs. 1.28 against the Canadian Dollar (CAD), Rs. 1.67 against the Pound Sterling (GBP), and Rs. 1.62 against the Euro (EUR).

Moreover, it gained one paisa against the Saudi Riyal (SAR) and held out against the UAE Dirham (AED) in the interbank currency market on January 27.