SBP reserves dip by $1.64bn in a week

The SBP reserves plunged by $1.646 billion to $17.492bn during the week ended on Oct 15 from over $20bn in August, announced the central bank on Thursday.

The State Bank said that reserves decreased mainly due to external debt repayments that included $1bn against Pakistan Inter­national Sukuk.

During the week the reserves of the commercial banks increased by $4m to $6.835bn.

The country’s overall forex holdings fell by $1.642bn to $24.327bn in the period under review.

The decline in forex reserves which coincides with the Pakistani rupees slide against the dollar may further weaken the rupee, according to a report by Dawn.

The report added that while the government is negotiating with IMF for loans, it has reportedly planned to raise $3.5bn through selling of bonds on the international market.