SBP Reserves Remain Below $8 Billion Despite Marginal Increase

The foreign exchange reserves held by the central bank increased marginally on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday. On November 11, the foreign currency reserves held by the SBP were recorded at $7.960 billion, up $3 million compared to 7.957 billion on November 4. Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $13.796 billion. Net reserves held by banks stood at $5.837 billion, registering an increase of $73 million. Last week, the foreign exchange reserves held by the central bank decreased by $956 million on a weekly basis due to external debt servicing. Pakistan’s benchmark 5-year Credit Default Swap (CDS) has spiked dangerously in recent days, suggesting that investors have panicked amid the country’s depleting foreign exchange reserves. Despite the government’s assurance, investors remain skeptical about Pakistan’s upcoming obligation to repay credit holders $1 billion on December 5.