Pakistan Foreign Exchange reserves witness massive rise, Rupee likely to hit high against dollar
ISLAMABAD - The consistent inflows of foreign exchange have built up Pakistan’s reserve levels and they have touched almost $16 billion.
According to the State Bank of Pakistan (SBP), the forex reserves surged to $15.99 billion by the end of 29 November, 2019 with fresh inflows of $431 million in the last week.
They include foreign reserves of $9.11 billion held by the central ban (an eight-month high mark) and $6.88 billion held by commercial banks.
The improvement in the foreign exchange reserves depicts the healthy confidence of investors on Pakistan’s economy coupled with the measures taken by the government and the central bank alike. It also strengthens the value of Rupee against Dollar.
In this fiscal year 2019-20, the reserves of the central bank have increased by $1.8 billion. The FX swaps and forward liabilities have reduced by $1.95 billion between June-October 2019.
The increase in the liquid SBP reserves and the reduction of the swaps / forward liabilities reflect the build-up of FX buffers.
The stabilizing situation of the foreign exchange reserves is one of the important indicators for the economic stability of the country besides current account surplus, growth in export values and etc.