Pakistan’s foreign exchange holdings now total $13.12 billion.
Pakistan’s foreign exchange reserves drop: The SBP said that during the week ended September 1, 2023, the nation’s foreign reserves decreased by $44 million to $13.12 billion. The SBP’s reserves decreased by $70 million, falling to $7.77 billion.
However, commercial banks’ net foreign reserves fell by $25.6 million to $5.34 billion.
The State Bank of Pakistan’s (SBP) foreign exchange reserves decreased by $81 million on August 31 to reach $7.84 billion.
The nation’s entire liquid foreign reserves, which had decreased by $77.4 million, were now at $13.17 billion. The amount of net reserves maintained by commercial banks decreased by $3.9 million to $5.32 billion.
In order to “bring transparency and competitiveness” to the sector, the State Bank of Pakistan (SBP) decided to implement “structural reforms” in the exchange companies industry.
According to a statement released by the central bank today, they implemented the reforms to improve services to the general public and to bring competition and openness to the sector of exchange companies.
“The state bank stated that this is expected to strengthen governance, internal controls, and compliance culture in the sector.”
As part of these reforms, leading banks actively involved in the foreign exchange market will establish fully-owned “exchange companies to cater to the legitimate foreign exchange needs of the general public.”