SBP Reserves Decline to Below $3 Billion

The foreign exchange reserves held by the central bank decreased by another 5.5 percent on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday. On February 3, the foreign currency reserves held by the SBP were recorded at $2.916 billion, down $170 million compared to $3.086 billion on January 27. The central bank reserves are currently at their lowest since February 2014. Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $8.539 billion. The net reserves held by banks stood at $5.656 billion, registering a decrease of $34 million during the week. The SBP said in a statement that the decline in reserves on a weekly basis was due to external debt repayments. According to Arif Habib Limited, the current reserves are enough for import cover of fewer than 0.58 months (approximately 17 days). The reserves held by the central bank have declined by $2.6 billion since the start of the current calendar year.