The State Bank of Pakistan (SBP) has reported a significant boost in the country’s liquid foreign exchange reserves, which surged by $200 million to reach $15.062 billion as of the week ending July 26, 2024. This increase marks a notable improvement from the $14.862 billion recorded the previous week.
According to the latest data released by the central bank on Thursday, the rise in foreign exchange reserves reflects a positive shift in the country’s financial stability. The official foreign exchange reserves held by the SBP saw a substantial increase, climbing to $7.767 billion from $7.612 billion the week before. This growth of $155 million in the SBP’s reserves is attributed primarily to official government inflows.
The SBP’s report highlights that these inflows were critical in bolstering the central bank’s reserve position, providing a cushion against external economic pressures and contributing to the country’s overall financial health. The increase in official reserves is seen as a sign of improved liquidity and financial management.
In addition to the rise in central bank foreign exchange reserves, commercial banks also reported an increase in their foreign exchange reserves. The reserves held by commercial banks grew by $45 million, reaching $7.295 billion compared to $7.25 billion in the preceding week. This uptick reflects a broader improvement in the financial sector’s reserve levels and signifies a stable banking environment.
The overall increase in foreign exchange reserves is seen as a positive development for Pakistan’s economy, indicating enhanced stability and confidence among financial institutions. The boost in reserves is expected to provide a stronger buffer against any potential external economic shocks and support the country’s ongoing efforts to manage its economic challenges.
The SBP continues to monitor the reserve levels closely and is expected to maintain a vigilant stance to ensure that the gains are sustained and contribute positively to the country’s economic stability. The central bank’s actions and the ongoing inflows of official funds play a crucial role in reinforcing the financial position of the country and supporting its economic goals.
For further updates and detailed information on the foreign exchange reserves and other economic indicators, stakeholders and interested parties are encouraged to follow the SBP’s regular reports and announcements.
