SBP lowers remuneration rate on Special Cash Reserve Account for December

November 28, 2025 (MLN): The State Bank of Pakistan (SBP) has reduced the remuneration rate on the Special Cash Reserve Account (US$) for December 2025 by 14 basis points (bps).

In a notification issued on Friday, the central bank stated that banks maintaining these foreign currency reserve accounts with the SBP will receive a 2.86% return for December, down from 3.00% set for November 2025.

This rate applies to deposits raised under FE-Circular 25 of 1998, according to the latest circular issued by the SBP.

Under the current framework, banks and non-bank financial institutions (NBFIs) are required to maintain cash reserves equivalent to 25% of their total FE-25 deposits with the SBP, comprising 5% in a Cash Reserve Account and 20% in a Special Cash Reserve Account.

While the cash reserve is non-remunerative, the special cash reserve is remunerated monthly based on the rate notified by the SBP.

As per the DMMD Circular Letter No. 03 of 2023, the remuneration rate is determined using the CME 1-month Term Secured Overnight Financing Rate (SOFR) published on the last working day of the previous month, minus 1% service charges.

The adjustment reflects the SBP’s ongoing mechanism for aligning the remuneration rate on foreign currency reserves with prevailing international benchmarks.

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