Reserves rise $51m, help rupee snap losing streak

KARACHI:

Pakistan's foreign exchange reserves, held by the central bank, increased $51 million in a week, helping the rupee partially recover by Rs0.05 in inter-bank market on Thursday.

The local currency appreciated to Rs278.68 against the greenback, ending a three-day losing streak.

According to the State Bank of Pakistan (SBP) weekly update, the foreign exchange reserves rose to $9.15 billion in the week ended August 2, 2024, in line with the uptrend seen in the previous week.

The central bank attributed no reason for the increase of $51 million in reserves. The reserves still provide import cover for less than two months, though the central bank has continued to purchase dollars from local currency markets.

SBP Governor Jameel Ahmad acknowledged last week that the bank was buying foreign currency from local markets to boost the country's foreign exchange reserves. He projected that reserves would surge $4 billion in the current fiscal year, rising to $13 billion by the end of the year on June 30, 2025.

The reserves held by commercial banks rose $29.1 million and settled at $5.32 billion in the week ended August 2, 2024. Accordingly, the country's total foreign exchange reserves touched $14.47 billion with a surge of $80.2 million.

In the currency market, the rupee appreciated Rs0.05 and settled at Rs278.68/$ in inter-bank dealings. It ignored the pressure seen over the past three days after SBP Governor Jameel Ahmad assured the National Assembly Standing Committee on Finance that Pakistan's external economy remained under control.