KARACHI: Foreign exchange reserves of the State Bank of Pakistan (SBP) fell by $157 million during the week ended on Oct 21, but an inflow of $1.5 billion from the Asian Development Bank elevated the reserves level.

However, the US dollar remained in high demand in the interbank market as a result it appreciated by 81 paise against the rupee despite a massive inflow from the ADB. The greenback closing price was Rs221.50.

Amid steep shortages, the US dollar gained Rs1.5 to close at 225.40 in the open market. Since Oct 11, the greenback appreciated by Rs6.

Meanwhile, the SBP reported on Thursday that its foreign exchange holdings fell to $7.439bn during the week under review. The declining trend in the foreign exchange reserves continued and the central bank has so far lost over $9bn during the current calendar year.

On Oct 26, the SBP received a $1.5bn loan for the Government of Pakistan from the ADB. These proceeds would be visible in SBP reserves for the week ending Oct 28. However, with this inflow, the SBP’s total reserves increased to $8.939bn.

The country’s total reserves during the week were $13.162bn while the holdings of the commercial banks were $5.722bn.

Published in Dawn, October 28th, 2022