SBP Reserves Surge by Over $2.5 Billion

Pakistan’s foreign exchange reserves continue to receive handsome inflows that have raised their level to over $23 billion. According to the State Bank of Pakistan (SBP), the total liquid foreign reserves held by the country had stood at $23.2203 billion by the week ending on 9 April 2021. The foreign reserves held by the SBP had stood at $16.106 billion, and the net foreign reserves held by commercial banks had stood at $7.113 billion. The SBP reserves had increased by $2.579 billion to $16.106 billion last week. The increase in the reserves is attributed to the receipt of the proceeds of $2.5 billion against the issuance of the Pakistan Euro Bonds. In April, the country also received a tranche of nearly $500 million from the International Monetary Fund (IMF) that has improved the overall situation of the reserves. The handsome inflows of foreign exchange have strengthened the Rupee’s position against the US Dollar, and will provide a cushion to the government during the repayment of loans to various countries and banks.