SBP-held foreign exchange reserves rise $393mn, stand at $4.46bn

Foreign exchange reserves held by the State Bank of Pakistan (SBP) surged $393 million, clocking in at nearly $4.46 billion as of June 30, data released on Thursday showed.

The overall number stands at a critical level at around a month of import cover.

Total liquid foreign reserves held by the country stood at $9.75 billion. Net foreign reserves held by commercial banks clocked in at $5.28 billion.

“During the week ended on June 30, 2023, SBP reserves increased $393 million to $4,462.7 million mainly due to receipt of official government of Pakistan inflows,” cited SBP statement.

SBP held reserves surged $533 million and clocked in at nearly $4.07 billion as of June 23 mainly due to realisation of $300 million proceeds of government of Pakistan’s commercial loan.

Last week, the International Monetary Fund (IMF) announced that its staff and Pakistani authorities have reached an agreement on policies to be supported by a $3-billion, nine-month Stand-By Arrangement (SBA).

The development acted as a much needed relief for Pakistan and improved market sentiment. The staff-level agreement is subject to approval by the IMF Executive Board in its meeting due on July 12.