The liquid foreign exchange reserves held by the State Bank of Pakistan (SBP) soared by over $464 million on a weekly basis according to data issued by the central bank on Thursday.
On December 29, the foreign currency reserves held by the SBP were recorded at $8.221 billion, up $464 million compared to $7.757 billion on December 22. In a short statement, the central bank said the increase was due to official GoP inflows.
Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $13.221 billion, up $365 million over the previous week. The net reserves held by banks stood at $4.999 billion, registering a decrease of $99 million during the week.
Last week, the central bank’s reserves posted an increase of $852.3 million. This means that, cumulatively, reserves have risen by $1.3 billion in the last two weeks.
The reserves are expected to further strengthen in the coming weeks as IMF’s Executive Board is set to meet on January 11 to consider the staff-level agreement on the first review under Pakistan’s Stand-By Arrangement (SBA). The Board approval will unlock a tranche of $700 million for Pakistan.
Is it progress or the loans?