SBP’s forex reserves rise $2.1b to $10.3b

Increase came after arrival of China bank’s loan proceeds

KARACHI:

The foreign exchange reserves held by the central bank increased 14.7% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday.

On June 24, the foreign currency reserves held by the SBP were recorded at $10,309 million, up $2,071 million compared with $8,237.7 on June 17.

According to the central bank, the increase came after accounting for the external debt repayment and the receipt of China Development Bank (CDB) loan proceeds amounting to RMB 15 billion.

Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $16,195.6 million.

Net reserves held by banks amounted to $5,886.6 million.

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 the general allocation of Special Drawing Rights (SDRs) worth $2,751.8 million from the 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.