SBP’s forex reserves dip $106m to $7.89b

The foreign exchange reserves held by the central bank decreased 1.3% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday.

On September 30, the foreign currency reserves held by the SBP were recorded at $7,899.8 million, down $106 million compared with $8,005.9 million on September 23.

According to the central bank, the decrease came due to external debt repayment which included interest payments on Eurobonds.

Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $13,588.8 million. Net reserves held by banks amounted to $5,689 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.

Published in The Express Tribune, October 7^th, 2022.

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