SBP’s reserves drop from $ 311 million to $ 16.1 billion
Foreign exchange reserves held by the central bank fell 1.89% on a weekly basis, according to data released Thursday by the State Bank of Pakistan (SBP).
As of June 18, foreign exchange reserves held by the SBP stood at $ 16,106.1 million, down $ 311 million from the $ 16,417.3 million recorded on June 11.
According to the central bank, the decrease is mainly due to the repayments of the external debt.
The aggregate liquid foreign exchange reserves held by the country, including net reserves held by banks other than SBP, amounted to $ 23,256.9 million. Net reserves held by banks amounted to $ 7,150.8 million.
On March 30, 2021, Pakistan borrowed $ 2.5 billion through Eurobonds by offering lucrative interest rates to lenders to build up foreign exchange reserves.
Pakistan received the first tranche of a loan of $ 991.4 million from the International Monetary Fund (IMF) on July 9, 2019, which helped to build reserves. At the end of December 2019, the IMF released the second tranche of the loan of approximately $ 454 million.
Reserves also jumped on the back of $ 2.5 billion in inflows from China. In 2020, the SBP succeeded in repaying more than $ 1 billion in foreign debt when Sukuk matures.
In December 2019, foreign exchange reserves exceeded the $ 10 billion mark thanks to inflows from multilateral lenders, including $ 1.3 billion from the Asian Development Bank (ADB).