SBP reserves fall $846m to $16.19b

The foreign exchange reserves held by the central bank fell 4.96% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday.

On January 21, the foreign currency reserves held by the SBP were recorded at $16,190.1 million, down $846 million compared with $17,035.7 million on January 14. According to the central bank, the decrease came due to external debt and other payments.

Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $22,482.1 million. Net reserves held by banks amounted to $6,292 million.

Earlier in the week ended August 27, 2021 the foreign exchange reserves held by the central bank soared to an all-time high of $20.15 billion after Pakistan received general allocation of Special Drawing Rights (SDRs) worth $2,751.8 million from the International Monetary Fund (IMF) on August 24. On March 30, 2021, Pakistan borrowed $2.5 billion through Eurobonds 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 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.

Published in The Express Tribune, January 28^th, 2022.

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