The foreign exchange reserves held by the central bank fell 2.2% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday.
On November 12, the foreign currency reserves held by the SBP were recorded at $16,945.4 million, down $381 million compared with $17,326 million on November 5.
The central bank gave no reason behind the fall. Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $23,550.6 million. Net reserves held by banks amounted to $6,605.2 million.
Earlier in the week ended on August 27, the foreign exchange reserves held by the central bank soared to an all-time high of $20.15 billion after Pakistan received general allocation of Special Drawing Rights (SDRs) worth $2,751.8 million from the International Monetary Fund (IMF) on August 24.
On March 30, 2021, Pakistan borrowed $2.5 billion through Eurobonds by offering lucrative interest rates to lenders aimed at building the foreign exchange reserves. It received the first loan tranche of $991.4 million from the IMF on July 9, 2019, which helped bolster the reserves. In late December 2019, the IMF released the second loan tranche of around $454 million.
Published in The Express Tribune, November 19th, 2021.