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Thursday, June 6, 2024

SBP’s foreign reserves dip by 4pc, raising new concerns

The Saudi Fund for Development said on Sunday that it will extend for one year a $3 billion deposit already held in SBP accounts since 2021.

According to the State Bank of Pakistan (SBP), country’s liquid foreign reserves fell by more than $308 million or 4.07% on a weekly basis during the week ending September 23.

According to SBP data, the country’s total liquid foreign currency reserves, comprising net reserves held by banks other than the SBP, were $13,761.9 million. Banks’ net reserves amounted to $5,756 million.

The central bank stated that the reserves held by the State Bank of Pakistan, after a $308 million decline, stand at US$8.59 billion, while commercial banks’ reserves are settled at $5.75 billion, after a $32.5 million increase.

As per SBP, the country’s total liquid foreign reserves were at $14.06 billion on September 16.

Read more: Inflow of dollars and declining foreign exchange reserves- what is happening?

The SBP stated that it maintained reserves at US$ 8.346 billion, compared to commercial banks’ reserves worth US$ 5.723 billion.

The bank claimed that due to external debt payments, the SBP reserves declined by US$ 278 million during the week ended September 16 to US$ 8,346.4 million.

Pakistan has an import cover of less than two months based on its current foreign exchange reserves position. A crucial level of reserves has put significant pressure on the Pakistani rupee, making it the poorest performing currency this month.

The central bank’s foreign exchange reserves reached an all-time high of $20.15 billion in the week ending August 27, 2021, after Pakistan received a general allocation of Special Drawing Rights (SDRs) worth $2,751.8 million from the IMF on August 24.

Read more: Amid govt-PTI blame game, IMF agreed to revive EFF programme

The Saudi Fund for Development said on Sunday that it will extend for one year a $3 billion deposit already held in SBP accounts since 2021.

Pakistan borrowed $2.5 billion using Eurobonds on March 30, 2021, by offering attractive interest rates to lenders in order to boost foreign exchange reserves.