KARACHI: Pakistan’s foreign exchange reserves, held by the State Bank of Pakistan (SBP), rose by $43 million, reaching a 26-month high of $9.51 billion for the week ending September 13, 2024, as reported by the central bank in its latest weekly update.
This increase coincided with the domestic currency strengthening to a five-and-a-half-month high of Rs277.91 against the US dollar in the interbank market, marking its seventh consecutive day of gains.
According to SBP data, foreign exchange reserves have risen for eight straight weeks, totaling a cumulative increase of $482.6 million over the past two months, returning reserves to levels last seen in July 2022. The central bank has enhanced its reserves by purchasing dollars from local currency markets.
During an analyst briefing, SBP Governor Jameel Ahmad indicated that the bank acquired $573 million in June 2024 and projects reserves to reach $12 billion by March 2025. An increase in foreign currency supply, driven by strong remittances and rising exports, has enabled the SBP to bolster reserves while fulfilling foreign debt obligations.
In July, the SBP had estimated that reserves would rise to $13 billion by June 2025.
Despite a $12.6 million decline in commercial bank reserves during the week of September 13, the country’s total reserves increased by $30.4 million, reaching $14.82 billion.
Supporting the rupee’s strength are the current account surplus of $75 million recorded in August and the US Federal Reserve’s recent interest rate cut. The Exchange Companies Association of Pakistan noted that the rupee remained stable at Rs280.70 in the open market.
