SBP’s forex reserves bounce back strong, after a dip

KARACHI: Pakistan’s foreign exchange reserves experienced a substantial surge, marking a noteworthy increase of $852 million or 12.3 per cent. As of the week concluding on December 22, 2023, the State Bank of Pakistan (SBP) reported that the foreign currency reserves under its purview reached $7,757.1 million.

This figure reflects a remarkable rise in contrast to the preceding week’s total of $6,904.8 million. The SBP officially confirmed this development, attributing the surge to the inflow of official Government of Pakistan funds.

Jul-Oct 23: revenues surge, deficit shrinks; but there’s a catch

Expanding the view to encompass the nation’s overall liquid foreign currency reserves, inclusive of reserves held by commercial banks, the collective amount tallied to $12,855.7 million. Within this total, net reserves held by commercial banks were reported at $5,098.6 million.

It’s worth noting that the week prior had witnessed a notable dip of $136 million in foreign exchange reserves. At that time, the central bank had linked the decrease to debt repayment activities.