Foreign exchange reserves fell to 9 billion dollars.
Thursday, July 28, 2022
- State Bank says the shortfall is due to external debt repayments.
- Net deposits held by banks are $5,839.5 million.
- Pakistan's import cover is less than 1.5 months.
KARACHI: The domestic foreign exchange reserves held by the State Bank of Pakistan (SBP) continue to decrease weekly.
According to data released by the State Bank of Pakistan (SBP) on Thursday, on July 22, the foreign currency reserves held by the SBP were recorded at $8,575.16 million, compared to $9,328.6 million on July 15 by $754 million. Dollars are low.
According to the central bank, this decrease was due to external debt and other payments.
- Jas Global
The country's total liquid foreign currency reserves, including net reserves with banks other than the State Bank, stood at $14,414.6 million.
Net deposits held by banks were $5,839.5 million.
It should be noted that with the current position of foreign exchange reserves, Pakistan's import cover is less than 1.5 months.
Meanwhile, the Pakistani rupee fell by Rs 3.92 in a single day to hit an all-time low of Rs 239.94 against the dollar in the interbank market today. However, the State Bank cannot smooth the erratic movement due to its limited position of foreign exchange reserves as well as being bound by International Monetary Fund (IMF) safeguards.
However, foreign exchange reserves are expected to improve after Pakistan reached a staff-level agreement with the fund and recovered $1.17 billion from the global lender.
Emerging markets analyst Emre Akakmak highlighted that Pakistan's international reserves with the central bank continued to decline in the week ending July 22.
"If [the country] didn't get the Chinese loan, the reserves would be $6.3 billion," he warned.
Taking to his Twitter, the analyst said the drawdown is not slowing down. "It is accelerating. The Pakistani rupee is weakening because it cannot last forever," he added.
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