Forex reserves decline by 2.9% WoW

Reach $7.2 billion on account of debt repayment

KARACHI:

Pakistan’s foreign exchange reserves witnessed a significant 2.9% decrease on a week-on-week basis, reaching $7.2 billion, the State Bank of Pakistan (SBP) reported on Friday.

As of the week ending on November 17, 2023, the SBP’s foreign currency reserves stood at $7,180.0 million, showing a decline of $217 million, compared to the previous week’s total of $7,396.7 million.

The reserves dropped on account of debt repayments, the SBP report mentioned.

The total liquid foreign currency reserves, including the reserves held by commercial banks, amounted to $12,302.3 million.

Net foreign reserves held by commercial banks stood at $5,122.3 million.

Read: Currency resists larger gains amid low forex

The country’s foreign exchange reserves (held by SBP) have been dropped by $217 million due to debt payment, slipping to less than two-month import cover at $7.2 billion.

The reserves have squeezed at a time when the International Monetary Fund (IMF) is about to release the funding of $700 million.

Earlier, the SBP’s reserves improved as Pakistan achieved the IMF’s $3 billion standby arrangement (SBA) and dollar deposits from friendly nations. The IMF initiated its loan programme, disbursing the first tranche of $1.2 billion. Additionally, Saudi Arabia and the United Arab Emirates (UAE) deposited $3 billion into the SBP’s accounts.

Published in The Express Tribune, November 24^th, 2023.

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