Karachi December 2 2022: SBP foreign exchange reserves for the week ending November 25 2022, were decreased by USD 327 million to USD 7,498 million as per data released by the Central Bank.
During the current month central bank reserves decline by more than a billion dollar due to external debt payments includes repayment of Governments commercial loans, according to State Bank of Pakistan. However, refinancing of these loans is in process which will improve foreign exchange reserves in the coming weeks.
At present, SBP reserves stand at the level of USD 7,498 million as of 25th November 2022, compared to USD 7,825 million at the end of the week ending 18th November 2022.
During the same period, foreign exchange reserves held by commercial banks increased by USD 60 million to the level of USD 5,879 million as of 25th November 2022.
Overall reserves held by the country witnessed decrease of USD 267 million to USD 13,378 million during the week ended 25th November 2022.
Pakistan Central Bank projected that the current account deficit is expected to remain moderate in FY23, with FX reserves gradually improving as anticipated external inflows from bilateral and multilateral sources materialize. If the recent decline in global oil prices intensifies or the pace of rate hikes by major central banks slows, pressures on the external account could diminish further.