KARACHI: The liquid foreign exchange reserves of the country have declined by $157 million to $20.679 billion by week ended April 02, 2021, State Bank of Pakistan (SBP) said on Thursday.
The foreign exchange reserves of the country were at $20.836 billion by week ended March 26, 2021.
The official reserves of the SBP fell by $146 million to $13.527 million by week ended April 02, 2021 as compared with $13.673 billion a week ago. The SBP attributed the decline to external debt repayments.
The foreign exchange held by commercial banks also eased by $11 million to $7.152 billion by week ended April 02, 2021 as compared with $7.163 billion a week ago.
Analysts said that the decline in reserves reflects ongoing external debt servicing obligations and rising import payments amid economic recovery. However, they noted that inflows from remittances and export receipts continue to provide some support to the external account.
The State Bank of Pakistan is expected to closely monitor currency stability and manage liquidity through prudent monetary measures. Market participants believe that future IMF-related inflows and bilateral support could help stabilize reserves in the coming weeks.
Despite short-term pressure, the overall external position remains manageable if inflows remain steady and global commodity prices do not surge further in near term.