State Bank reserves fall to lowest level since June 2020

• Forex reserves held by SBP decline by 6.04% on a weekly basis.
• SBP says this decline reflects repayment of debt.
• SBP reserves drop to its lowest level since June 26, 2020.

KARACHI: The foreign exchange reserves held by the State Bank of Pakistan (SBP) declined 6.04% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday.

On April 1, the foreign currency reserves held by the SBP were recorded at $11,319.2 million, down $728 million compared with $12,047.3 million on March 25.

According to the central bank, this decline reflects the repayment of debt.

"Reserves decrease […] largely due to debt repayment and government payment pertaining to the settlement of an arbitration award related to a mining project," the central bank said.

Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $17,476.9 million. Net reserves held by banks amounted to $6,157.7 million.

According to Arif Habib Limited, SBP reserves dropped to their lowest level since June 26, 2020.

Earlier today, the Pakistani rupee also fell below Rs188-mark for the first time in the history of Pakistan, closing the day at Rs188.18 against the US dollar in the interbank market.