Forex reserves rise $31m to $9.1b

Central bank did not provide reason for increase in reserves

KARACHI:

Pakistan’s central bank on Thursday reported that the country’s foreign exchange reserves reached $9.1 billion, up 0.3% week-on-week.

According to the State Bank of Pakistan (SBP)’s latest weekly update, its foreign currency reserves showed an increase of $31 million and reached $9,134.7 million in the week ended June 14, 2024 compared to the previous week’s total of $9,103.3 million. Separately, commercial banks held foreign currency reserves of $5,279.9 million, which took the country’s total liquid reserves to $14,414.6 million. The SBP gave no reason for the increase in reserves.

In recent weeks, the central bank’s reserves have risen gradually apparently in the wake of US dollar buying by the SBP in the local currency market, as supply of the greenback remained higher than its demand for import payments and other purposes.

Pakistan’s foreign exchange reserves have stayed above $9 billion for the past few weeks, providing cover for nearly two months of imports and helping the rupee stabilise against the US dollar.

Inflows of workers’ remittances, a vital source of foreign exchange, surged to a record high of $3.24 billion in May 2024. Additionally, export earnings have also shown some improvement.