Forex reserves hit historic high

By: News Desk      Published: 11:37 PM, 2 Sep, 2021
 Forex reserves hit historic high

The foreign exchange reserves reached all-time high of $20.14 billion as the State Bank of Pakistan (SBP) received $2.75 billion under the IMF allocation of Special Drawing Rights (SDRs), 24NewsHD TV channel reported on Thursday.

According to data released by the SBP, the foreign currency reserves on August 27 stood at $20,145.6 million, which were at $17,578.9 million on August 20. After accounting for external debt payments, the SBP’s reserves increased by $2,567 million to $20.145.6 million due to the government’s official inflows.

Overall, liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $27,227.7 million. Meanwhile, net reserves held by banks amounted to $7,082.1. The central bank had received $2.75 billion from the Fund under its new allocations for member countries to fight against COVID-19 challenges.

Pakistan was due to receive the amount on August 23 from IMF's general allocations of $650 billion, which had been approved to boost global liquidity amid the coronavirus pandemic across the globe. The amount was directly transferred to the SBP, which has further improved the country’s foreign exchange reserves. The Board of Governors of the IMF had approved a general allocation of SDRs equivalent to $650 billion on August 2, 2021.

According to an IMF statement, the allocation would benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy. It would particularly help the most vulnerable countries struggling to cope with the impact of the COVID-19 crisis.