Karachi February 5 2025: State Bank of Pakistan purchased USD 3.8 billion from open market during the period from June 2024 to October 2024 with net purchase of USD 1,026 million in October alone, according to data released by the central bank.
The released data indicates a consistent upward trend in net FX purchases, starting with USD 573 million in June 2024, followed by USD 722 million in July and slightly declining to USD 569 million in August. However, a notable surge occurred in September, with net purchases rising to USD 946 million, and peaking in October at USD 1,026 million. This pattern reflects the SBP’s intensified efforts to bolster foreign exchange reserves, likely aimed at stabilizing the domestic currency and managing external sector dynamics effectively.
During the calendar year 2024, the central bank purchased over USD 9 billion, said Jameel Ahmad, Governor of the State Bank of Pakistan, while speaking to The Express Tribune in earlier January this year after a meeting of the Senate Standing Committee on Finance. Of the USD 9 billion, over USD 4.5 billion was bought between July and December 2024, said the governor.
Net Fx Intervention is defined as outright and swap purchases of foreign exchange minus outright and swap sales of foreign exchange by the SBP from/to banks in the Interbank foreign exchange market.