State Bank Reserves Drop to 8-Year Low at $6.1 Billion

State Bank of Pakistan’s forex reserves falls to an 8-year low at $6.1 billion.

“During the week ended on December 16, 2022, SBP’s reserves decreased by $584 million to $6,116.2 million due to external debt repayment,” SBP said in a statement.

The country is facing an economic crisis with a dollar shortage and a delay in the resumption of the loan programs with the International Monetary Fund.

Investors are still concerned about the nation’s ability to keep up with its foreign debt obligations, with long-term dollar bonds continuing to trade at distressed levels despite the payment of a $1 billion bond this month.

The foreign exchange reserves held by the central bank fell by 8.7% on a week-on-week basis.