SBP’s reserves drop from $ 415 million to $ 18.15 billion

KARACHI:

Foreign exchange reserves held by the central bank fell 2.23% on a weekly basis, according to data released Thursday by the State Bank of Pakistan (SBP).

On December 17, the foreign exchange reserves held by the SBP stood at $ 18,153.7 million, down $ 415 million from $ 18,568.3 million on December 10.

According to the central bank, the decrease is mainly due to the repayment of the external debt.

The aggregate liquid currency reserves held by the country, including net reserves held by banks other than the SBP, amounted to $ 24,633 million. Net reserves held by banks amounted to $ 6,479.3 million.

Earlier in the week ending August 27, foreign exchange reserves held by the central bank hit a record high of $ 20.15 billion after Pakistan received a general allocation of Special Drawing Rights (SDRs) d ‘worth $ 2,751.8 million from the International Monetary Fund (IMF) on August 24.

On March 30, 2021, Pakistan borrowed $ 2.5 billion through Eurobonds by offering lucrative interest rates to lenders to build up foreign exchange reserves.

It received the first tranche of a loan of $ 991.4 million from the IMF on July 9, 2019, which helped build reserves. At the end of December 2019, the IMF released the second tranche of the loan of approximately $ 454 million.

Reserves also jumped on the back of $ 2.5 billion in inflows from China. In 2020, the SBP succeeded in repaying more than $ 1 billion in foreign debt when Sukuk matures.

In December 2019, foreign exchange reserves exceeded the $ 10 billion mark thanks to inflows from multilateral lenders, including $ 1.3 billion from the Asian Development Bank (ADB).