KARACHI: The State Bank of Pakistan’s (SBP) foreign exchange reserves declined by $74 million to $7.981 billion during the week ending April 19.

The central bank announced on Thursday that the decline was due to external debt repayments.

The SBP paid $1bn in the second week of this month against the maturity of Eurobonds but did not report any decline in its forex holdings. This was surprising for many who were watching the development keenly. The SBP has not explained how it succeeded in keeping the reserves above $8bn even after clearing its $1bn Eurobond liability.

The finance minister recently said that the SBP reserves would reach $10bn to $11bn by the end of June. He expects to receive $1.1bn from the IMF as the last tranche of the $3bn Stand-By Arrangement expiring this month.

According to SBP report, the country’s total reserves reached $13.280bn including $5.299bn held by commercial banks.

Due to import restrictions, the interbank currency market remains cool, and the banks feel no dollar demand pressure. At the same time, the exporters have been selling their maximum export proceeds to avoid any possible loss in case the local currency further appreciates against the US dollar.

Published in Dawn, April 26th, 2024

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

More pledges
Updated 25 May, 2024

More pledges

There needs to be continuity in economic policies, while development must be focused on bringing prosperity to the masses.
Pemra overreach
25 May, 2024

Pemra overreach

IT seems, at best, a misguided measure and, at worst, an attempt to abuse regulatory power to silence the media. A...
Enduring threat
25 May, 2024

Enduring threat

THE death this week of journalist Nasrullah Gadani, who succumbed to injuries after being attacked by gunmen, is yet...
IMF’s unease
Updated 24 May, 2024

IMF’s unease

It is clear that the next phase of economic stabilisation will be very tough for most of the population.
Belated recognition
24 May, 2024

Belated recognition

WITH Wednesday’s announcement by three European states that they intend to recognise Palestine as a state later...
App for GBV survivors
24 May, 2024

App for GBV survivors

GENDER-based violence is caught between two worlds: one sees it as a crime, the other as ‘convention’. The ...