FX reserves increase by $1.98bn in a week: SBP

June 30, 2022: (MLN): Breaking a long losing streak, the total liquid foreign exchange reserves held by the country increased by $1.98 billion or 13.97% WoW to stand at $16.2bn during the week ended on June 24, 2022, compared to $14.2bn in the previous week, weekly data released by the State Bank of Pakistan (SBP) on Thursday showed.

The data further revealed that during the week SBP received proceeds of CDB loan amounting to RMB 15 billion ($2.3bn). After accounting for external debt repayment, SBP’s reserves increased by $2.07bn or 25% WoW to $10.3bn.

On the other hand, the reserves of commercial banks inched down by $86.1mn or 1.44% WoW to $5.88bn.

Meanwhile, it is important to note that, the current level of foreign currency reserves is enough to cover 1.49 months of imports.

On the forex front, the Pakistani rupee (PKR) managed to gain its ground by 2.4 rupees in four consecutive sessions to settle the week’s trade at PKR 204.85 per USD mainly on the back of positive news flow regarding the IMF tranche and the inflows received from China.

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