Pakistani rupee posted a marginal decline against the US dollar for the 18th successive session in the inter-bank market amid falling foreign exchange reserves, reported 24NewsHD TV channel.

According to the forex dealers, the greenback went up by 1 paisa against the Pakistani rupee and was closed at Rs228.15.

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As per the State Bank of Pakistan (SBP), the rupee had slid by 21 paisas on Thursday to close at 228.14. During the ongoing fiscal year, the rupee has depreciated 10.25% against the greenback.

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The foreign exchange reserves held by the State Bank of Pakistan fell by 22.1% on a week-on-week basis, according to data released by the SBP.

On January 6, 2023, SBP’s foreign currency reserves were recorded at $4,343.2 million, down $1,233 million compared to $5,576.5 million on December 30.

According to the SBP, the decrease in reserves came due to external debt repayments.

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Overall, the liquid foreign currency reserves held by the country, including the net reserves held by banks other than the SBP, stood at $10,187.8 million. Net reserves held by banks amounted to $5,844.6 million.

The reason behind the foreign reserves continuously falling is the pressure of external payments. Upon repaying the loans obtained from some Arab banks, the reserves witnessed a decrease of $1.223 billion in foreign exchange reserves in last week.

There was also some positive news on the financial front as the UAE has agreed to roll over the existing loan of US$2 billion and provide US$1 billion additional loan to Pakistan.

In another important development, Federal Minister for Finance and Revenue Ishaq Dar has “categorically” dismissed rumours suggesting that the government is considering “access to foreign exchange held by commercial banks.”

“It is categorically denied and clarified that there is no such move under consideration of the government,” said Dar.

Reporter Ashraf Khan