Pakistan’s foreign exchange reserves witnessed a minor increase this week, with the State Bank of Pakistan (SBP) holdings edging up $19 million. According to data released by the SBP on Thursday, the central bank’s reserves reached $8.040 billion as of March 29th, compared to $8.022 billion the prior week.
However, the broader picture of the country’s liquid foreign currency reserves paints a slightly different picture. Total liquid reserves, which include net reserves held by commercial banks alongside the SBP, dipped by $49 million to $13.379 billion compared to the previous week. This decline was driven by a decrease in net bank reserves, which fell by $67 million to $5.339 billion during the same period.
Fluctuations in foreign exchange reserves are a key indicator of a nation’s economic health and liquidity in global markets. The modest increase in SBP holdings, despite marginal declines in other reserve categories, reflects the ongoing dynamics of Pakistan’s financial landscape.