SBP buys $11.38 billion from domestic FX market in 18 months, turns net buyer

The State Bank of Pakistan (SBP) bought $11.38 billion from the domestic foreign exchange market between June 2024 and November 2025, according to the latest data released, as the central bank shifted from supporting market supply to net purchasing dollars.

SBP data shows the central bank has become a net buyer in the interbank market after previously selling foreign exchange to banks to support liquidity and exchange rate stability. Net FX intervention includes outright and swap purchases minus outright and swap sales with banks in the interbank market.

During the first five months of current fiscal year, SBP purchased $3.122 billion from domestic FX market. SBP reserves rose to $16.2 billion in second week of February and are projected to reach $20.2 billion by end-December 2026.

Month-wise data shows SBP purchased more than $1 billion in four months during period under review. Highest monthly purchase was $1.15 billion in November 2024, followed by $1.026 billion in October 2024, $1.023 billion in September 2025, and $1.033 billion in October 2025.

SBP governor, in recent media interaction, linked improvement in FX market conditions to structural changes, including action against exchange companies involved in malpractices and introduction of transaction monitoring system. He also said he reviews FX market developments daily and issues directions when required.

Central bank’s purchases helped strengthen external buffers during period of debt repayments, according to report. SBP also said remittance outlook remains positive, with inflows expected to reach around $42 billion.