Reserves rise to $9.11b on dollar buying

Pakistan’s foreign exchange reserves, held by the State Bank of Pakistan (SBP), increased $16 million and stood at $9.11 billion in the week ended May 31, 2024, as the central bank apparently continued to follow its policy of absorbing surplus supply of the greenback from the domestic market. Despite the improvement, the country’s capacity to pay for goods and services’ imports remained low with the reserves covering less than two months of imports. However, Pakistani currency remained under pressure for most of the day, as it lost Rs0.09 to close at Rs278.39 against the US dollar on Thursday. According to the central bank’s data, the foreign exchange reserves held by commercial banks decreased $116 million to $5.10 billion in the week under review. Accordingly, the total foreign currency reserves dipped $100 million and settled at $14.21 billion.