According to statistics provided by the State Bank of Pakistan (SBP) on Thursday, the central bank’s foreign currency reserves fell 3.46 percent on a weekly basis.
The SBP’s foreign currency reserves were reported as $9.723 billion on May 27, down $366 million from $10.089 billion on May 20. The reserves of central banks have dropped to a 128-week low, the lowest since December 2019.
— SBP (@StateBank_Pak) June 2, 2022
The fall in reserves was attributed to the servicing of foreign debt, according to the central bank.
The country’s total liquid foreign currency reserves, comprising net reserves held by banks other than the SBP, were $15.771 billion. The total amount of net reserves held by banks was $6.049 billion.
On Thursday, Finance Minister Miftah Ismail said that the terms and conditions for Chinese banks refinancing a $2.3 billion deposit had been reached. The Chinese banks’ deposits will provide a much-needed boost to the country’s reserves.