SBP-held foreign exchange reserves drop by $70mn, now stand at $7.78bn

Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by another $70 million on a weekly basis, clocking in at $7.779 billion as of September 1, data released on Thursday showed.

Total liquid foreign reserves held by the country stood at $13.127 billion. Net foreign reserves held by commercial banks stood at $5.347 billion.

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

“During the week ended September 1, 2023, SBP’s reserves decreased by $70 million to $7,779 million on account of debt repayments,” it said.

Last week, foreign exchange reserves held by the SBP had decreased by $81 million.

In three weeks, the dollar stockpile has dropped by $276 million.

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. It also got inflows from Saudi Arabia and the UAE.

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