Forex reserves drop by $784m to $6.7b

SBP cites $1b payment for Sukuk, other debt repayments as reasons

KARACHI:

The foreign exchange reserves held by the central bank fell by 10.4% on a week-on-week basis, according to data released by the State Bank of Pakistan (SBP) on Thursday.

On December 2, the foreign currency reserves held by the SBP were recorded at $6,714.9 million, down by $784 million compared with $7,498.7 million on November 25.

According to the central bank, the reserves decreased on account of payment of $1 billion for the maturing Pakistan International Sukuk and some other external debt repayments.

“Some of the debt repayments were offset by inflows, mainly $500 million from the Asian Infrastructure Investment Bank (AIIB),” it said.

Overall, the liquid foreign currency reserves held by the country, including the net reserves held by banks other than the SBP, stood at $12,581.7 million. Net reserves held by banks amounted to $5,866.8 million.

In the week ended August 27, 2021, the foreign exchange reserves soared to an all-time high of $20.15 billion after Pakistan received the general allocation of Special Drawing Rights (SDRs) worth $2.751 billion from the IMF.

Published in The Express Tribune, December 9^th, 2022.

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