SBP’s foreign exchange reserves plunge to $5.5 billion

KARACHI: The foreign exchange reserves held by State Bank of Pakistan (SBP) continued their declining spree, plunging by $245 million to reach $5.58 – the lowest level since April 2014, ARY News reported on Thursday, quoting the central bank.

According to the data issued by State Bank of Pakistan, the total liquid foreign reserves held by the country stood at $11.43 billion.

Meanwhile, net foreign reserves held by commercial banks stood at $5.85 billion.

“During the week ended on December 30, 2022, SBP-held foreign exchange reserves decreased by $245 million to $5,576.5 million due to external debt repayment,” said the central bank.

Last week, foreign exchange reserves held by the SBP had fallen $294 million to $5.82 billion. The total liquid foreign reserves held by the country, including net reserves held by banks other than the SBP, stood at $11,707.2 million.

It is pertinent to mention here that Global ratings agency S&P Global cut Pakistan’s long-term sovereign credit rating by one notch to “CCC+” from “B” to reflect a continued weakening of the country’s external, fiscal and economic metrics.

The S&P Global, in a statement, said Pakistan’s already low foreign exchange reserves will remain under pressure through 2023 unless oil prices slump or foreign assistance improves.