SBP reserves rise $845m to $18.1b

The foreign exchange reserves held by the central bank rose 4.9% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Friday.

On July 16, the foreign currency reserves held by the SBP, after accounting for external debt repayments, were recorded at $18,050.7 million, up $845 million compared with $17,205.6 million recorded on July 9.

“During the week ended July 16, SBP received proceeds of $1,040.8 million against Pakistan Eurobonds,” the central bank said.

Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $25,128 million. Net reserves held by banks amounted to $7,077.3 million.

Earlier, Pakistan borrowed $2.5 billion through Eurobonds on March 30, 2021 by offering lucrative interest rates to lenders aimed at building the foreign exchange reserves.

It received the first loan tranche of $991.4 million from the International Monetary Fund (IMF) on July 9, 2019, which helped bolster the reserves. In late December 2019, the IMF released the second loan tranche of around $454 million.

The reserves also jumped on account of $2.5 billion in inflows from China. In 2020, 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 Asian Development Bank (ADB).