Karachi, September 14, 2023 – The State Bank of Pakistan (SBP) has disclosed a decrease of $140 million in its official foreign exchange reserves for the week ending September 8, 2023.
The foreign exchange reserves held by the SBP fell to $7.64 billion, down from $7.78 billion recorded a week earlier on September 1, 2023. The central bank attributed this decline in foreign exchange reserves to external debt repayments.
Meanwhile, the liquid foreign exchange reserves of the country experienced a decrease of $48 million, reaching $13.079 billion by the week ending September 8, 2023, compared to $13.127 billion from the previous week.
However, in contrast to the decline in official reserves, foreign exchange held by commercial banks saw an increase of $93 million, reaching $5.44 billion by the week ending September 8, 2023, compared to $5.347 billion from the previous week.
Market sources suggest that the boost in foreign exchange reserves held by commercial banks is linked to the government’s crackdown on currency smuggling and hoarding. They further explained that a significant amount of foreign currency had been handed over to commercial banks by exchange companies during the last week.
The fluctuation in foreign exchange reserves remains a key indicator for Pakistan’s economic stability and its ability to meet external financial obligations. As the government continues its efforts to combat illegal currency activities and manage external debts, the performance of these reserves will remain a closely monitored aspect of the country’s economic landscape.