Forex reserves hit 6-month high at $8.27b

Pakistani currency closed stable at a three-month high above Rs279.50 against the US dollar in the inter-bank market on Thursday as the central bank’s foreign exchange reserves hit over six-month high at $8.27 billion. The State Bank of Pakistan (SBP) reported that its foreign exchange reserves increased by a net 3%, or $243 million, in the week ended January 19, 2024. In its latest weekly update, the central bank said the reserves rose in the wake of latest inflows – including the second tranche of $705.6 million received from the International Monetary Fund (IMF) under its ongoing loan programme of $3 billion – and despite outflows on account of foreign debt repayment. Taking to social media platform X, Arif Habib Limited CEO Shahid Ali Habib said “the heightened reserves level has played a crucial role in maintaining the stability of the Pakistani rupee against the US dollar in recent times.” The current reserves level had last been seen in mid-July 2023, he added. Caretaker Finance Minister Dr Shamshad Akhtar said over the weekend the reserves had soared to $9.1 billion after the receipt of the IMF’s latest tranche in the week under review.