SBP reserves rise $45m to $8.44b

Central bank cites no reason for the increase

KARACHI: The foreign exchange reserves held by the central bank rose 0.5% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday.

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 the United Arab Emirates (UAE), Saudi Arabia and other friendly nations helped shore up the foreign exchange reserves.

On November 15, the foreign currency reserves held by the SBP were recorded at $8,442.1 million, up to $45 million compared with $8,397.3 million in the previous week. The SBP, in its report, cited no reason for the increase in reserves.

SBP paints bleak economic outlook for FY20

Overall, liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $15,462.3 million. Net reserves held by banks amounted to $7,020.2 million.

Pakistan received the first loan tranche of $991.4 million from the International Monetary Fund (IMF) on July 9, which helped bolster the reserves. Previously, the reserves had jumped on account of $2.5 billion in inflows from China.

Over time, the declining reserves have forced the central bank to let the rupee depreciate massively.

Published in The Express Tribune, November 22^nd, 2019.

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