State Bank of Pakistan Reserves Hit An Eight-Month High At $9.11Bn

As per the data released by the State Bank of Pakistan (SBP), the foreign exchange reserves held by the central bank have increased 5% weekly, having hit an eight-month high. 

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As per the data released by the State Bank of Pakistan (SBP), the foreign exchange reserves held by the central bank have increased 5% weekly, having hit an eight-month high.

Previously, these reserves decreased and fell below the $7 billion mark, which was a matter of concern over whether or not Pakistan was able to fulfill its financial requirements.
Financial help, which Pakistan received from Saudi Arabia, UAE (United Arab Emirates) and other nations, played a big role in increasing the foreign exchange reserves.

On 29th November, the foreign currency reserves were at $9,112.9 million, $430.6 million more than last week, where this figure stood at $8,682.3 million.

“In this fiscal year, the SBP reserves have increased by $1.8 billion” – the central bank said.

“Foreign exchange swaps/forward liabilities have decreased by $1.95 billion between June and October 2019. Increase in the liquid SBP reserves and reduction in the swaps/forward liabilities reflects the build-up of foreign exchange buffers” – it further added.

The liquid foreign currency reserves held by Pakistan, including net reserves held by banks other than SBP, stood at $15,993.2 million. Net reserves held by other banks stood at $6,880.3 million.

The first loan of $991.4 million was received by Pakistan from IMF (International Monetary Fund) on 9th July, which also helped in increasing the reserves.
Previously, these reserves increased on account of $2.5 billion aid from China.

However, with the passage of time, the decline in reserves forced the central bank to let the rupee devaluate massively, which raised eyebrows on whether or not the country was able to finance a hefty import bill, and simultaneously meet the debt obligations in the upcoming months.

In April of 2018, the SBP reserves increased $593 million due to official inflows.
A few months back, the reserves increased due to official inflows, including $622 million from the ADB (Asian Development Bank) and $106 million from the World Bank.

$350 million were also received by SBP under CSF (Coalition Support Fund). In January last year, the SBP made a $500 million loan repayment to SAFE (State Administration of Foreign Exchange), China.

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