Forex reserves dip $54m to $8.21b

Despite outflows due to foreign debt repayment, the reserves remain robust

KARACHI:

Pakistan’s central bank, on Thursday, reported that the country’sforeign exchange reserves reached $8.21 billion, marking a 0.6% week-on-week decline as of January 26, 2024. The State Bank of Pakistan (SBP) explained that the reduction was attributed to debt repayments. The SBP’s foreign currency reserves experienced a $54 million drop compared to the previous week total of $8.27 billion. Including commercial banks’ reserves, the country’s total liquid foreign currency reserves amounted to $13.26 billion, with commercial banks holding net reserves of $5.04 billion.

In its weekly update, the central bank highlighted the positive impact of recent inflows, including the second tranche of $705.6 million from the International Monetary Fund (IMF) under its $3 billion ongoing loan programme. Despite outflows due to foreign debt repayment, the reserves remained robust.

Read Forex reserves hit 6-month high at $8.27b

Arif Habib Limited CEO Shahid Ali Habib highlighted on social media that the elevated reserve levels played a crucial role in stabilising the Pakistani rupee against the US dollar.

The IMF’s upward revision for Pakistan’s foreign exchange reserves to $9.1 billion by June 2024 suggests a continued gradual growth momentum. Last week, reserves briefly dropped to $8.27 billion, likely due to foreign debt repayment.

Published in The Express Tribune, February 2^nd, 2024.

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