SBP-held forex reserves climb by $43 million in one week

WEB DESK: The foreign exchange reserves held by the State Bank of Pakistan (SBP) went up by $43 million, or 0.45 per cent, during the week ending on September 13, 2024, reaching $9.51 billion, according to data shared by the SBP on Thursday.

At the same time, the country’s total reserves rose by $30.4 million, or 0.21 per cent, bringing the total to $14.83 billion. However, the reserves held by commercial banks dropped by $12.6 million, or 0.24 per cent, down to $5.32 billion.

In a new move, the SBP reduced its key policy rate by 200 basis points to 17.5 per cent, while most analysts had expected a 150 basis points cut. This marks the third rate reduction in a row, making the total cut 450 basis points since June 2024.

The central bank has been able to continue lowering the rates because inflation is slowing down, giving them space to try to boost economic growth.

During an analyst briefing, Jameel Ahmad, the governor of the central bank, said that Pakistan is expecting the International Monetary Fund (IMF) to review its new $7 billion loan program this month.

He added that the country has secured over $2 billion in financing from sources other than the IMF.

Since the start of the current fiscal year, SBP’s reserves have increased by $120.1 million, or 1.28 per cent. So far this calendar year, they’ve grown by $1.29 billion, or 15.67 per cent.

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