Foreign exchange: SBP's reserves surge 15.8%, stand at $14.7b

Change in reserves attributed to proceeds from bonds floated in international market

KARACHI: Foreign exchange reserves held by the State Bank of Pakistan (SBP) increased 15.8% on a weekly basis, according to data released by the central bank on Thursday.

On December 8, foreign currency reserves held by the central bank were recorded at $14,666.3 million, up $2,005.8 million or 15.8% compared to $12,660.5 million in the previous week, according to the central bank.

The change in reserves was due to proceeds from the Pakistan international bonds and payments on account of external debt servicing and other official outflows.

Overall, liquid foreign reserves held by the country, including net reserves held by banks other than the SBP, stood at $20,686.7 million. Net reserves held by banks amounted to $6,020.4 million.



Pakistan recently raised $2.5 billion by floating dollar-denominated sovereign bonds in the international market in a bid to shore up official reserves.

A few months ago, foreign currency reserves also surged due to official inflows including $622 million from the Asian Development Bank (ADB) and $106 million from the World Bank.

Earlier, the SBP received $350 million under the Coalition Support Fund (CSF) and made payments of $62 million for external debt servicing.

In January, the SBP made a $500-million loan repayment to the State Administration of Foreign Exchange (SAFE), China.