SBP Reserves Surge by $2.6 Billion

The State Bank of Pakistan witnessed huge inflows of $3 billion from the Kingdom of Saudi Arabia as part of the financial assistance program. The country’s reserves surged to $25.1 billion by the week ending 3 December 2021. During the week, the external debt and other official payments were also made. Therefore, the reserves of the central bank reflected the net addition of $2.648 billion to stand at $18.658 billion. The foreign exchange reserves held by the commercial banks stood at $6.4 billion, the SBP’s data said. During the period of 5-26 November, the foreign exchange reserves depleted by over $1.5 billion. The reserves of SBP declined by $1.31 billion, whereas the reserves of commercial banks decreased by $211 million. The outflow of the reserves was reported due to heavy payment on account of debt payment to various financial institutions. On the other hand, higher imports bill, the smuggling of Dollars, and the purchase of Dollars through commercial banks and open markets are also factors for this trend. The central bank has taken various measures to control the unnecessary outflow of Dollars. However, the situation seems to be futile apparently. The Rupee depreciation against the Dollar continues to touch historic lows, which is a worrisome situation for the country’s economy.