SBP loses around $2bn in reserves in two weeks

Published October 29, 2021
The SBP reported that the foreign exchange reserves fell by $346 million during the week ended on October 22. — Radio Pakistan/File
The SBP reported that the foreign exchange reserves fell by $346 million during the week ended on October 22. — Radio Pakistan/File

KARACHI: Foreign exchange reserves of the State Bank of Pakistan (SBP) fell by almost $2 billion in the last two weeks to settle at $17.146bn until Thursday.

The SBP reported that the foreign exchange reserves fell by $346 million during the week ended on October 22. Last week the reserves fell by $1.6bn. The foreign exchange reserves of the State Bank declined by $1.946bn during last couple of weeks.

The fast depletion of reserves has already damaged the exchange rate of local currency. The SBP reserves were at peak with $20bn in August. Since then, the SBP lost $2.854bn. According to the central bank the entire amount was used for external debt servicing.

The latest report about $3bn Saudi deposits in the account of SBP supported the exchange rate and US dollar depreciated on the second day by 52 paisa with the closing price of Rs172.26. On Wednesday, the dollar lost Rs2,48 which was the first deprecation since May 2021.

The country’s total reserves fell by $3.135bn since record high of $27.068bn in August. This week, the country’s reserves fell by $394m while commercial banks’ reserves decreased by $48m to $6.787bn.

Published in Dawn, October 29th, 2021

Opinion

Editorial

16 Jan, 2022

Omicron threat

AS Pakistan grapples with the fifth coronavirus wave fuelled by the Omicron variant, the state must take timely...
Updated 16 Jan, 2022

Grim picture

There is much the govt can do to create an environment free of repression and coercion so that democracy is strengthened.
16 Jan, 2022

Larkana jail unrest

THAT Larkana Central Prison authorities had to resort to the excuse of “cleaning the jail” to shift 13 dangerous...
‘Mini-budget’ comes into force
Updated 15 Jan, 2022

‘Mini-budget’ comes into force

MANY in the PTI government must have swallowed their pride to get the two controversial bills — one withdrawing ...
15 Jan, 2022

CNG relief

THE Peshawar High Court has granted partial relief to CNG stations against a ban on their operations by the district...
15 Jan, 2022

Street crime in Karachi

WEDNESDAY once again brought home the dangers that lurk on the streets of Karachi. Armed men waylaid a car in which ...