While the SBP’s foreign exchange reserves fall by $136m to $6.9bn.
Rupee gains ground: Strengthens against US Dollar. In a positive turn of events, the Pakistani rupee showcased resilience as it continued its upward trajectory against the US dollar in the interbank market on Friday. Forex dealers reported a notable appreciation of Rs0.29, with the exchange rate reaching Rs282.50 around 10 in the morning.
Importantly, this positive trend signifies a strengthening of the Pakistani rupee against the greenback. Banks are now selling the US dollar to importers at Rs283 in the interbank market, while in the open market, the dollar is being traded at Rs284.50. This positive movement follows the rupee’s closing at 282.79 against the US dollar on the previous day.
Amidst this encouraging development, it’s worth noting that the State Bank of Pakistan (SBP) has reported a decrease in foreign exchange reserves by $136 million, bringing the total to $6.904 billion. However, the overall liquid foreign reserves for the country stand at $12.0 billion as of the week ending on December 15, showing a significant improvement from the previous week’s total of $7.04 billion.
This positive performance of the Pakistani rupee reflects favorable market dynamics and economic stability. As the rupee strengthens, it contributes to a more favorable environment for businesses and consumers alike. The increase in foreign reserves, despite a slight dip, also indicates a robust foundation for the country’s financial stability.
The State Bank of Pakistan’s timely disclosure of these figures underscores transparency in financial reporting, providing stakeholders with a clear understanding of the nation’s economic standing. This positive momentum in the forex market aligns with broader efforts to enhance economic resilience and stability, fostering optimism for continued positive trends in the foreseeable future.
SBP’s foreign exchange reserves
The foreign exchange reserves held by State Bank of Pakistan (SBP) have dropped to $6.904 billion after a decrease of $136 million.
In a statement issued today, the SBP said the country’s total liquid foreign reserves stood at $12.0 billion in the week ended on December 15, compared to the previous week’s total of $7.04 billion.
The SBP said its reserves decreased by $136 million to $ 6.9 billion due to debt repayments during the week under review. Meanwhile, net foreign reserves held by commercial banks remained $5.1 billion.
Total liquid foreign reserves held by Pakistan, in the previous week ended on December 08, 2023, were $12,206.4 million.
Among them, foreign exchange reserves held by SBP were $ 7,040.8 million while net foreign reserves held by commercial banks were $ 5,165.6 million.
More From FactFile: Rupee continues ascendance against US Dollar
Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement on the first review under Pakistan’s Stand-By Arrangement (SBA).
The agreement is subject to the approval of IMF’s Executive Board after approval around US$700 million will be available bringing total disbursements under the program to almost US$1.9 billion.
According to details, the agreement is subject to approval of the IMF’s Executive Board and upon approval around 700 million US dollars will become available bringing total disbursements under the program to almost 1.9 billion US dollars.
