SBP reserves rise $13m to $12.8b

Central bank cites no reason for the increase

The foreign exchange reserves held by the central bank increased 0.1% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday.

On September 11, the foreign currency reserves held by the SBP were recorded at $12,820.4 million, up $13 million compared with $12,807.8 million in the previous week. The central bank cited no reason for the increase in reserves.

Overall, liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $19,959 million. Net reserves held by banks amounted to $7,138.6 million.

Pakistan received the first loan tranche of $991.4 million from the International Monetary Fund (IMF) on July 9 last year, which helped bolster the reserves. In late December, the IMF released the second loan tranche of around $454 million.

Previously, the reserves jumped on account of $2.5 billion in inflows from China.

A few months ago, the SBP successfully made foreign debt repayment of over $1 billion on the maturity of Sukuk.

In December 2019, the foreign exchange reserves surpassed the $10-billion mark owing to inflows from multilateral lenders including $1.3 billion from the ADB.

Foreign investment of over $3 billion in the debt market in the current fiscal year also played an important role in the growing foreign currency reserves.

Published in The Express Tribune, September 18^th, 2020.

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