SBP slows dollar buying to ease market pressure

Currency dealers say the State Bank of Pakistan (SBP) has slowed down its dollar purchases from the interbank market in an apparent effort to maintain liquidity and contain pressure on the exchange rate amid a growing trade deficit. “The SBP is buying dollars much slower than last year, when it purchased $7.8bn to boost its foreign exchange reserves,” said a currency dealer, adding that higher import demand has led to exchange rate management becoming more active in recent weeks. While the rupee has remained relatively stable, market experts warned that this stability may be short-lived if the current account remains in deficit for September. A deficit for the third consecutive month would mean the entire first quarter of FY26 has been in the red.