SBP Reserves Plummet by $748 Million to $8.24 Billion

The foreign exchange reserves held by the central bank decreased 8.3 percent on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday.

On June 17, the foreign currency reserves held by the SBP were recorded at $8.237 billion, down $748 million compared to $9.226 on June 3 mainly due to external debt repayments. The central bank reserves are currently at their lowest level since October 25, 2019.

“SBP reserves are expected to increase in coming days on realization of proceeds of CDB loan,” the central bank said in a statement.

Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $14.210 billion. Net reserves held by banks amounted to $5.972 billion.

The Pakistani Rupee (PKR) appreciated by 2.22 percent against the US Dollar and closed at Rs. 207.23 after gaining Rs. 4.70 in the interbank market today.

The rupee ended its eight-day losing streak after Pakistan signed a $2.3 billion loan facility agreement with a consortium of banks from China on Wednesday. According to Finance Minister Miftah Ismail, the inflow is expected within a couple of days.

The inflow will provide a much-needed boost to the country’s foreign exchange reserves.

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