State Bank’s reserves rise to $9.1bn

KARACHI: The State Bank of Pakistan’s (SBP) foreign exchange reserves increased by $75 million to $9.102 billion during the week ending July 26, announced the central bank on Thursday.

The SBP did not mention the source of this inflow. However, the market people know the central bank regularly buys dollars from the interbank market to build its reserves.

“Before this increase, the SBP’s forex holdings recorded a decline of $397m to $9.027bn in the preceding week from $9.423bn. The State Bank said the outflow was for the debt servicing.

The country’s total liquid foreign reserves stood at $14.39bn, and its net foreign reserves held by commercial banks were $5.29bn.

Rupee gains

The exchange rate on Thursday slightly changed in favour of the rupee as it appreciated by eight paise to Rs278.66 against the US dollar. The exchange rate has been almost stable for more than four months with minor fluctuations. The stability attracted higher remittances and foreign direct investments in FY24 despite political and economic uncertainties in the country.

Currency experts said the exporters’ selling of dollars was the best result of this exchange rate stability.

The exporters do not hold the dollars for any longer period which provided sufficient liquidity for the dollars market.

Published in Dawn, August 2nd, 2024