August 04, 2022 (MLN): The total liquid foreign exchange reserves held by the country dropped by $206 million or 1.42% WoW to stand at $14.2 billion during the week ended on July 29, 2022, compared to $14.4bn in the previous week, weekly data released by the State Bank of Pakistan (SBP) on Thursday showed.
On the back of external debt and other payments, reserves held by the central bank during the week dipped by $189.7mn or 2.21% WoW to clock in at $8.23bn.
The data further revealed that the reserves of commercial banks went down by $16.2mn or 0.27% WoW to $5.84bn.
Meanwhile, it is important to note that, the current level of foreign currency reserves is enough to cover 1.20 months of import bill.
However, the government officials are hopeful that Pakistan will soon receive the funds from the International Monetary Fund (IMF) as Dr. Esther Perez Ruiz, IMF’s Resident Representative for Pakistan on Wednesday said, “Pakistan has completed all prior actions for loan review.”
She went on to say that the country has met its last prior action of the IMF for the combined 7th and 8th review after increasing the petroleum development levy (PDL).
So, technically this development would unlock the tranche of $1.177bn, bringing total disbursements around $4.2bn.
On the forex front, PKR made a historic comeback as it gained over 12.4 rupees within two interbank sessions on IMF’s latest statement and improving economic fundamentals.
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