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SBP-held foreign exchange reserves fall below $8bn

  • Debt repayments and lack of fresh inflows put pressure on dollar stockpile
Published August 24, 2023

Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by $125 million on a weekly basis, clocking in at $7.93 billion as of August 18, data released on Thursday showed.

Total liquid foreign reserves held by the country stood at $13.25 billion. Net foreign reserves held by commercial banks stood at $5.32 billion.

The central bank cited debt repayments as the reason for the decrease in the foreign currency reserves.

“During the week ended August 18, 2023, SBP’s reserves decreased by $125 million to $7,930.3 million on account of debt repayments,” it said.

Last week, foreign exchange reserves held by the SBP increased by $12 million.

The central bank reserves saw a decline after gaining a little in the week earlier. Before, it had declined for three straight weeks, mainly due to debt repayments.

In July, reserves held by the SBP got a boost as Pakistan received the first tranche of about $1.2 billion from the International Monetary Fund (IMF) after its lender approved a new $3-billion Stand-By Arrangement.

However, the central bank reserves are now under pressure on the back of debt repayments, rise in import payments after ease in restrictions, and lack of fresh inflows.

After reporting a surplus for four successive months, Pakistan’s current account posted a deficit of $809 million in July, the highest since October 2022.

Meanwhile, the Pakistani rupee registered a new record low as it dropped below the 300 level for the first time against the US dollar in the inter-bank market on Thursday. It settled at 300.22, a decrease of Re0.58 or 0.19%, as per the State Bank of Pakistan.

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Mark Aug 24, 2023 08:19pm
BR has turned into youthia propoganda brigade. Neutral or positive news are portrayed as negative resulting in damaging Pakistan.
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TheActualTruth Aug 25, 2023 01:08am
@Mark, Please do let everyone know what positivity can be brought-forth from this, "meagre reserves built on debt are declining and Rupee has hit 300 and there are no inflows forthcoming". How can this be made positive or even neutral so that nerves and ego of you patwaris can be satiated Or your patwari mind cannot comprehend what is happening and the rabbit hole we are falling into but you still need to blab here because otherwise you will not get paid.
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Fatima Aug 25, 2023 01:37am
@Mark, factual report, what spin would you like ?
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Bilal Arshad Deo Aug 25, 2023 09:20am
@Mark, Don't bark just listen the music ever buy a roti you b...... ever paid a bill you baby rich father bas... ever see prices no someone paying for you and you know why? Riches and corrupts puppy don't put your mouth here
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