SBP’s forex reserves continue upward trend for 17th straight week

KARACHI: The State Bank of Pakistan’s (SBP) foreign exchange reserves saw a modest increase of $29.4 million, or 0.26 per cent, during the week ending on November 15, 2024, bringing the total to $11.29 billion. This data was shared by the SBP on Thursday.

Overall, Pakistan’s total reserves have experienced slight increase of $2.2 million or 0.01 per cent, reaching $15.97 billion. However, reserves held by commercial banks dipped by $27.2 million or 0.58 per cent, landing at $4.68 billion.

Since the start of the fiscal year, SBP’s reserves have risen by $1.9 billion marking a 20.22 per cent growth. For the calendar year the increase stands at $3.07 billion,or 37.3 per cent.

This consistent rise in foreign currency reserves indicates that US dollar supply has remained strong, helping the rupee maintain a level below Rs278 per dollar. On Thursday, the rupee gained slightly, closing at Rs277.96 against the dollar in the interbank market, compared to Wednesday’s two-month low of Rs278.04.

Interestingly, SBP’s reserves have been on the rise for 17 consecutive weeks despite a recent $1 billion foreign debt repayment. The central bank has managed to boost reserves by purchasing dollars locally, thanks to healthy worker remittances and improvements in exports.

In terms of the currency, the Pakistani rupee edged up by 0.08 paisa, or 0.03 per cent, in Thursday’s session, closing at Rs277.96 per dollar. The rupee reached a high of Rs278.10 and a low of Rs278.00 during intraday trading.

So far this fiscal year, the rupee has strengthened by 38.22 paisa, or 0.14 per cent, against the US dollar. Since the beginning of the calendar year, it has appreciated by Rs3.90, or 1.40 per cent.

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