SBP: Foreign exchange reserves jump 12.9% to $8b
KARACHI: According to Thursday figures published by the State Bank of Pakistan (SBP), foreign assets held by the central bank rose by a large amount of 12.9%.
The rise came after on July 9 Pakistan got $991.4 million in the IMF's first tranche.
In the past, equities had spiraled down below the $7-million mark, causing fear that Pakistan could not be able to meet its financing requirements. But US Arab Emirates (UAE) and Saudi Arabia's economic support helped to boost foreign exchange reserves.
On 12 July, the SBP's foreign currency reserves were recorded at 8,001.3 million dollars, rising to 917.7 million dollars over the past week, compared with 7,083.6 million.
“After taking into account outflows relating to external debt and other
official payments, the SBP reserves increased by $918 million during the week,”
the statement added.
Total, the country's reserves of liquid foreign currency, including net reseves retained by banks other than the SBP, amounted to $15.249.2 million. Banks ' net assets totalled 7,247.9 million dollars. Earlier, Chinese inflows had increased reserves by $2.5 billion.
The decreasing reserves have compelled the central bank, in the course of a moment, to massively depreciate the rupee, raising the fear that the country can fund large-scale import bills and fulfil its bond commitments in the next months.
The SBP stocks risen by 593 million dollars in April last year owing to formal inflows. Reserves grew a few months earlier, thanks to formal influxes from the Asian Development Bank (ADB) including 622 million dollars and the World Bank 106 million dollars.
The Coalition Support Fund (CSF) got $350,000 million previously. SBP paid a grant of $500 million to the State Foreign Exchange Administration (SAFE), China in January of last year.