Pakistan’s foreign exchange reserves have been experiencing a constant decline over the past five weeks. However, according to the recent data released by the State Bank of Pakistan (SBP) on Thursday, the foreign exchange reserves rose by 0.45% on a weekly basis.
This is a good sign for the country as it will increase the confidence in the monetary and exchange policies of the government. The increase in foreign exchange reserves will also enable the SBP to stabilize the foreign exchange rates, an issue that came to light number of times in the past few weeks.
On August 18, the foreign exchange reserves held by the SBP were recorded at $14,375.1 million, up $64.6 million or 0.45% compared to $14,310.5 million during the preceding week, according to the SBP. Unfortunately, the central bank did not provide any reason for the increase in foreign exchange reserves.
The total liquid foreign reserves held by the country – including net reserves held by banks other than the central bank – stood at $20,046.3 million. Adding to that, net reserves held by banks amounted to $5,671.2 million. The SBP also made a $500 million loan repayment to the State Administration of Foreign Exchange (SAFE), China, in January.
We’ll continue to follow the story to keep our readers updated.