SBP Reserves Drop Again to Remain at Near Four-Year Low

The foreign exchange reserves held by the central bank decreased marginally on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday. On December 9, the foreign currency reserves held by the SBP were recorded at $6.7 billion, down $15 million compared to $6.715 billion on December 02. Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $12.57 billion. The country’s overall liquid foreign exchange reserves are at their lowest level since 2014. The net reserves held by banks stood at $5.87 billion, registering an increase of $3 million during the week. The reserves held by the central bank are currently at their lowest level since January 2019 when they dropped to $6.6 billion (on January 18). According to data shared by Arif Habib Limited, the central bank’s reserves are not sufficient for import cover of even one month. Last week, the SBP reserves plummeted by over 10 percent as it made payment against the maturing Pakistan International Sukuk and other external debt repayments.