KARACHI: During the week that concluded on October 11, the State Bank of Pakistan’s (SBP) foreign exchange reserves rose by $215 million to $11.022 billion, the highest amount since FY21.
The source of this influx was not disclosed by the central bank in its announcement on Thursday, but the market believes that the SBP has been purchasing dollars from the banking market.
By the end of the current fiscal year, the government expects to increase the SBP reserves to $13 billion. Growing reserves contribute to exchange rate stabilization, which in turn motivates exporters to sell their whole export revenues. According to bankers, remittances were among the many inflows during the current fiscal year.
The commercial banks owned $5.088 billion of the nation’s $16.111 billion foreign exchange reserves.
