State Bank of Pakistan foreign reserves continue to record increase

KARACHI: The State Bank of Pakistan (SBP) witnessed an increase of US$87 million in its foreign reserves during the week ending Feb 21, reported ARY News.

According to the central bank, the net liquid foreign reserves held by the country stood at $18.74 billion.

Of the total, foreign reserves held by the State Bank of Pakistan were recorded at $12.59 billion, while those held by commercial banks decreased by $91 million to $6.15billion.

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Ratings agency Moody’s earlier today said Pakistan’s continued inclusion in the Financial Action Task Force (FATF) grey list is negative for the country’s banking system.

Global watchdog Financial Action Task Force (FATF) said last week that Pakistan would remain on the grey list, and asked the country to implement the agreed-upon action plan until June.

“The announcement is credit negative for Pakistani banks because it raises questions about potential additional restrictions relating to banks’ foreign-currency clearing services, as well as their foreign operations,” Moody’s said, adding that increased compliance costs would also hamper banks’ profitability.

SBP reserves continue to record increase