SBP’s forex reserves under pressure, drop to $7.779 billion amid debt repayments

ISLAMABAD: Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by another $70 million on a weekly basis, clocking in at $7.779 billion as of September 1.

Total liquid foreign reserves held by the country stood at $13.127 billion. Net foreign reserves held by commercial banks stood at $5.347 billion.

The central bank cited debt repayments as the reason for the decrease in foreign currency reserves.

Last week, foreign exchange reserves held by the SBP had decreased by $81 million.

In three weeks, the dollar stockpile has dropped by $276 million.

Read more: Pakistani rupee appreciates against US dollar

In July, reserves held by the SBP got a boost as Pakistan received the first tranche of about $1.2 billion from the International Monetary Fund (IMF) after its lender approved a new $3-billion Stand-By Arrangement.

However, the central bank reserves are now under pressure on the back of debt repayments, rise in import payments after ease in restrictions, and lack of fresh inflows.