SBP Reserves Decrease by $179 Million in One Week

The foreign exchange reserves held by the central bank declined by 4.3 percent on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday. On June 2, the foreign currency reserves held by the SBP were recorded at $3.912 billion, down $179 million compared to $4.091 billion on May 26. Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $9.335 billion, down $178 million over the previous week. The net reserves held by banks stood at $5.423 billion, registering a minor increase during the week. The sixth consecutive decline in the central bank’s reserves has now pushed the country’s import cover to just 0.86 months, according to Arif Habib Limited. In simple terms, Pakistan only has enough money to pay for imports of around 25 days. Last time Pakistan’s reserves fell below the $4 billion mark was back in February.