SBP-held forex reserves rise by $29.8 million

ISLAMABAD: The foreign exchange reserves held by the State Bank of Pakistan (SBP) went up by $29.8 million, which is a 0.32 per cent increase compared to the previous week. As of September 6, 2024, the reserves are now at $9.47 billion, according to data shared by the central bank.

In the same way, the country’s total reserves grew by $56.2 million, or 0.38 per cent, bringing the total to $14.8 billion. The reserves held by commercial banks also went up by $26.4 million, or 0.50 per cent, reaching $5.33 billion.

In another update, the SBP reduced its key policy rate by 200 basis points, making it 17.5 per cent. This was a larger cut than expected, as most predicted a 150 basis point reduction.

This is the third time in a row the rate has been cut, with a total reduction of 450 basis points since June 2024. Policymakers made this decision because inflation has slowed down, giving them the chance to lower rates to help boost economic growth.

During a briefing, SBP Governor Jameel Ahmad said that Pakistan is waiting for the International Monetary Fund (IMF) to review its new $7 billion loan program this month. He also mentioned that the country has secured over $2 billion in financing from lenders apart from the IMF.

So far in the current fiscal year, SBP’s reserves have risen by $77.1 million, or 0.82 per cent. For the calendar year, they have increased by $1.25 billion, or 15.15 per cent.

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