In order to mobilize deposits of dollars in the banking system, the State Bank of Pakistan (SBP) has increased the rate of return on special cash reserves to 0.12 percent from zero, according to a circular.
According to a circular issued by the State Bank of Pakistan, “The rate of remuneration for the month of June 2022 on Special Cash Reserve Account (US$) maintained with the State Bank of Pakistan will be 0.12 percent.”
The increase in the rates will attract dollar deposits at the banks.
In May 2021 foreign exchange reserves held by other banks reached their peak of $7.133 billion. Since then continuous outflow witnessed as there was a charm in keeping dollar deposits at other banks. At present, foreign exchange reserves held by commercial banks stood at $6.033 billion.
