Foreign exchange reserves held by SBP plunge again and now stand at $9.8 billion – Markets

After surpassing the $10 billion mark last week, foreign exchange reserves held by the State Bank of Pakistan (SBP) plunged $493 million due to external debt repayments, the Bank said on Thursday. central bank.

On June 24, reserves held by SBP received a boost after CDB loan proceeds amounting to RMB 15 billion (about $2.3 billion) were received by the central bank. As a result, they rose to $10.3 billion.

Foreign exchange reserves held by SBP exceed $10 billion after Chinese loan

However, during the week ended June 30, 2022, SBP reserves decreased by $493 million to $9.82 billion due to external debt and other payments.

Meanwhile, the total liquid foreign exchange reserves held by the country stood at over $15.74 billion, with net foreign exchange reserves held by commercial banks reaching $5.93 billion.

Falling reserves put increasing pressure on the rupiah which posted a marginal gain against the US dollar to close near the 208 level in the interbank market on Thursday.

The rupee records a marginal gain against the US dollar

According to the State Bank of Pakistan (SBP), the local currency stood at 207.91, an appreciation of eight paisas or 0.04 percent, against the greenback.

The low level of foreign exchange reserves has been a source of headaches for economic policymakers who have been knocking harder on the doors of the International Monetary Fund (IMF) for the revival of Pakistan’s Extended Financing Facility (EFF).

Just before the Chinese influx, foreign exchange reserves held by the SBP had shrunk by $748 million on a weekly basis, falling to a critical level of $8.24 billion as of June 17, 2022.