SBP reserves decrease by $36.4mn in a week

April 06, 2023 (MLN): The foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by $36.4 million or 0.85% WoW to $4.2 billion during the week ended on March 31, 2023, according to the data released by the central bank on Thursday.

Similarly, the country's total reserves decreased by $56.1mn or 0.57% WoW to $9.75bn.

The reserves held by commercial banks moved down by $19.7mn or 0.35% WoW to $5.55bn.

This was the second consecutive week wherein the foreign exchange reserves started shrinking again. 

On the upside, the International Monetary Fund (IMF) on Thursday confirmed that Saudi Arabia has provided confirmation of $2 billion in extra deposits to the cash-strapped economy, raising expectations of a prompt signing of the deal.

Since January, the government has been in talks with the IMF to secure the release of $1.1bn from a $6.5bn bailout package agreed upon in 2019.

Nonetheless, the agreement has been postponed due to commitments from friendly countries to provide further financial assistance.

The upcoming inflows will shore up foreign exchange reserves. 

At this point, the UAE's confirmation of a $1bn deposit is eagerly awaited, as it is anticipated to facilitate the conclusion of the staff-level agreement (SLA) with the IMF, and attention is now focused on this development.

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