SBP reserves drop 2.6% to $7.1b

Decline due to payments on account of external debt servicing

KARACHI: The foreign exchange reserves held by the central bank fell 2.6% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday.

The central bank received the first tranche from IMF of $991.4 million on July 9, after which the SBP’s reserves increased to $8,035.5 million. Earlier, the reserves had spiralled downwards, falling below the $7-billion mark, which raised concern over Pakistan’s ability to meet its financing requirements. However, financial assistance from UAE and Saudi Arabia helped shore up the foreign exchange reserves. On July 5, the foreign currency reserves held by the SBP were recorded at $7,083.6 million, down $189 million compared with $7,272.8 million in the previous week.

During the week, the State Bank received $500 million worth of inflows out of the total promised aid of $3 billion from Qatar. The decline was recorded due to payments on account of external debt servicing, the statement added. Overall, liquid foreign currency reserves, held by the country, including net reserves held by banks other than the SBP, stood at $14,259.3 million.

Published in The Express Tribune, July 12^th, 2019.

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