KARACHI, Nov 29: Pakistan’s liquid foreign exchange reserves stood at $4.319 billion on November 24, up from $3.621 billion a week earlier.
The latest State Bank figures released here on Thursday, shows that the total $4.319 billion reserves included $2.742 billion held by the SBP and $1.577 billion held by the banks.
The reserves had got a major boost on November 20 when the US gave Pakistan $600 million aid as part of a $1 billion package for its support to US-led war in Afghanistan. The inflow of $600 million had raised the reserves to the highest ever mark of $4.217 billion on November 20.
Bankers said what added $102 million more to the reserves in next four days bringing the total reserves to $4.319 billion was SBP’s dollar buying from banks.
Emboldened by a major boost in the reserves during the week ending on November 24, the State Bank took some key decisions to further liberalize the foreign exchange market: the SBP relaxed rules for the banks to buy and sell foreign exchange between themselves and it also lifted foreign exchange quota fixed from overseas travelling. Bankers say since the reserves are still at a comfortable level (equal to five-month import bill), the State Bank may take more steps to further open up the foreign exchange market.
