Monday, February 26, 2024

Pakistan Foreign Exchange Reserves Fall to $4.09 Billion

The State Bank of Pakistan (SBP) has reported a significant drop in the country’s foreign exchange reserves, with a decrease of $102 million to reach approximately $4.09 billion as of May 26. This decline raises concerns as the aggregate figure remains at a critical level, representing only about one month’s worth of import cover. The drop in reserves is primarily attributed to external debt payments made during the specified week, as stated by the SBP.

With foreign exchange reserves playing a crucial role in supporting a country’s economic stability, the decrease in Pakistan’s reserves emphasizes the need for effective management and measures to strengthen the country’s financial position.

It highlights the importance of maintaining a healthy balance between debt obligations and reserves to ensure sufficient liquidity for imports and to support the stability of the domestic currency. The State Bank of Pakistan will continue to monitor the situation closely and take appropriate actions to manage the country’s foreign exchange reserves effectively.

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