The SBP-led foreign exchange reserves dropped below $6 billion at the end of last week, triggering an alarm for the economic managers of the country, says in media reports. During the week ended Dec 23, 2022, the central bank’s reserves further declined by $294 million to $5.822 billion as compared to $6.116 billion on Dec 16, 2022. The drop was recorded due to external debt repayment. Now, the SBP and banks’ foreign exchange reserves are at equal level.

On the other hand, net foreign exchange reserves held by commercial banks surged by $2 million to $5.885 billion. During the period under review, the total liquid forex reserves held by the country fell by $292 million to stand at $11.707 billion. Clocking around $18 billion at the outset of 2022, the reserves held by the SBP have witnessed significant depletion during the last 12 months.

Credit: Independent News Pakistan-INP