SBP’s forex reserves fall $341m to $8b

The foreign exchange reserves held by the central bank decreased 4.07% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday.

On September 23, the foreign currency reserves held by the SBP were recorded at $8,005.9 million, down $341 million compared with $8,346.4 million on September 16.

According to the central bank, the decrease came due to external debt repayment.

Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $13,761.9 million. Net reserves held by banks amounted to $5,756 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 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.

It received the first loan tranche of $991.4 million from the IMF on July 9, 2019, which helped bolster the reserves.