The foreign exchange reserves of Pakistan have reached a five year high of $23.2 billion last week with the State Bank of Pakistan (SBP) crediting the rise to the country’s return to the international debt market, The News reported.

The central bank of Pakistan said in a statement, “The increase in reserves is attributed to receipt of proceeds of $2.5 billion against issuance of Pakistan euro bonds”, adding that the country’s forex reserves reached $23.2 billion, which is the highest level achieved since June 30, 2016.

The foreign reserves increase by PKR2.5 billion or 12.2 per cent on a weekly basis, while the reserves held by the country stood at $20.6 billion in the previous week.

 

SBP’s reserves increased to $16.1 billion, marking the highest level since FY2017. On a week-on-week basis, the central banks’ reserves increased by $2.5 billion and a week ago the reserves were at $13.5 billion. The reserves held by commercial banks stood at $7.1 billion.

Giving his remarks about the increase in foreign reserves in Pakistan, the executive director at BMA Capital, Saad Hashemy said that this is an extremely positive development and credit goes to the government for swiftly concluding the issuance of the Eurobonds.

“Given strong remittances, there is no downside risk to reserves at least in the short to medium term,” said Hashemy.

The reserves remained stable since the second quarter of the current fiscal year due to a host of factors: continued official and private inflows, appreciation in the exchange rate and a manageable current account.

From : pk.mashable.com

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