SBP forex reserves rise $2.65bn to $18.66bn

KARACHI: The foreign exchange reserves held by the central bank rose 16.6% during the week ending on December 3, according to the data released by the State Bank of Pakistan (SBP) on Thursday.

On December 3, the foreign currency reserves held by the SBP were recorded at $18,658.2 million, up $2,648 million compared with $16,010.3 million on November 26.

According to the central bank, the increase was witnessed due to $3 billion deposit by the Saudi Fund for Development.

Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $25,150.7 million. Net reserves held by banks amounted to $6,492.5 million.

The State Bank of Pakistan (SBP) received on Saturday $3 billion from Saudi Arabia under a support package signed between Pakistan and the kingdom.

Adviser to the Prime Minister on Finance Shaukat Tarin on December 4 confirmed the kingdom has deposited the loan amount with the country’s central bank.

“Good news, US$3 billion Saudi deposit received by SBP,” he tweeted, thanking Saudi Crown Prince Mohammed Bin Salman and the kingdom for the “kind gesture”.

Good news, US$3 billion Saudi deposit received by SBP. I want to thank His Excellency Crown Prince Mohammed Bin Salman and Kingdom of Saudi Arabia for the kind gesture.

— Shaukat Tarin (@shaukat_tarin) December 4, 2021

SBP earlier this week signed an agreement with the Saudi Fund for Development (SFD) to receive $3 billion to shore up its depleting foreign exchange reserves.

“Under this deposit agreement, SFD shall place a deposit of USD 3 billion with SBP. The deposit amount under the agreement shall become part of SBP’s Foreign Exchange Reserves,” the central bank had said on Monday.