SBP’s forex reserves rise by $258m

Central bank gives no reason for increase to $4.6 billion

KARACHI:

The foreign exchange reserves held by the central bank rose by 5.9% on a week-on-week basis, according to data released by the State Bank of Pakistan (SBP) on Thursday.

On January 13, 2023, SBP’s foreign currency reserves were recorded at $4,601.2 million, up $258 million compared to $4,343.2 million on January 6. The central bank didn’t give any reason for the increase.

Overall, the liquid foreign currency reserves held by the country, including the net reserves held by banks other than the SBP, stood at $10,443.6 million. Net reserves held by banks amounted to $5,842.4 million.

According to analysts, the reason for the continuous decline in foreign currency reserves in recent weeks is the pressure of external payments. Following the repayment of loans to some Gulf banks, the reserves had decreased by $1.223 billion in the previous week.

After the recent Geneva conference, Pakistan is hoping to receive billions of dollars in aid from friendly countries and donors including the UAE, Saudi Arabia and China, which will help improve the foreign exchange reserves.

Published in The Express Tribune, January 20^th, 2023.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.