KARACHI: The foreign exchange reserves dropped $117 million (o.5 percent) on a week-on-week basis to reach $23.9 billion during the week ended January 07, 2022.
According to a statement issued by the State Bank of Pakistan (SBP) on Thursday, the foreign exchange reserves of the country were recorded at $24.019 billion a week ago on December 31.
The foreign currency reserves held by the SBP were recorded at $17,597.9 million, down $88 million compared with $17,686 million on December 31. The central bank gave no reason behind the decrease in reserves.
Similarly, the foreign exchange reserves held by commercial banks fell $29mn to $6.30 billion from $6.33 billion in the previous week.
The foreign exchange reserves held by the country also decreased by $255 million to reach $24.019 billion during the week ended December 31, 2021 on a week-on-week basis.
The foreign exchange reserves held by the central bank soared to an all-time high of $20.15 billion after Pakistan received a general allocation of Special Drawing Rights (SDRs) worth $2,751.8 million from the International Monetary Fund (IMF) on August 24.
Pakistan has been looking to build its foreign currency reserves on the back of loans, remittances, and higher exports. However, foreign direct investment continues to be an area of concern for policymakers. The reserves level is also critical for Pakistan to build an import cover with the bill crossing $5 billion each month, putting pressure on the currency that fell to its weakest level against the US dollar this month. – TLTP