SBP Increases Foreign Exchange Reserves by $46 Million
State Bank of Pakistan (SBP) has raised its foreign exchange reserves by $46 million in a week that ended on January 31, 2025. The reserves had increased after a decline in two consecutive weeks.
The latest increase took the SBP’s forex reserves to $11.42 billion. Although the SBP frequently buys dollars from the interbank market, it did not disclose the exact sources of the funds that contributed to this increase.
There is hope that the SBP can increase its reserves to $13 billion by the end of FY25. The higher inflows of remittances have strengthened this hope.
A major advantage of such bigger reserves is much more stability in the exchange rate. This in turn has helped exporters to sell their foreign currency earnings much easier because the market has stabilized and become predictable. At present, the entire foreign exchange reserve stands at $16.04 billion, against which $4.62 billion by way of commercial banks.
