SBP’s forex reserves plummet to $3.08b

Central bank attributes decrease to external debt repayments

KARACHI:

The foreign exchange reserves held by the central bank fell by 16.1% on a week-on-week basis to a distressing $3.09 billion, according to data released by the State Bank of Pakistan (SBP) on Thursday.

On January 27, 2023, the SBP’s foreign currency reserves were recorded at $3.08 billion, down by $592 million compared to $3.67 billion on January 20. This marks the lowest level of reserves held by the central bank since February 2014.

The central bank attributed the decrease to external debt repayments.

Overall, the liquid foreign currency held by the country, including the net reserves held by banks other than the SBP, stood at $8.74 billion. The net reserves held by banks amount to $5.65 billion.

According to analysts, the biggest reason for the continuous decline in the country’s foreign currency reserves is the pressure of external payments.

Published in The Express Tribune, February 3^rd, 2023.

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