SBP reserves hit two-year high above $9bn

The State Bank of Pakistan’s (SBP) foreign exchange reserves reached a two-year high, crossing the $9 billion mark after inflows from the International Monetary Fund (IMF). The central bank released the latest data about the foreign exchange reserves on Thursday, showing that the reserves went up to $9.120bn at the end of the week on May 3. “During the week, the SBP reserves increased by $1.114bn to $9.120bn mainly due to receipt of $1.1bn from the IMF as the final tranche under the Stand-By Arrangement (SBA),” said a statement issued by the bank. The country’s overall forex reserves reached $14.458 billion including $5.338bn held by commercial banks. The SBP’s reserves were $9bn in mid-July 2022, and since then, they have never found support to stop falling. At the end of FY23, the country was close to sovereign default as the foreign exchange reserves of the State Bank fell to $4.4bn in June 2023.