The State Bank of Pakistan (SBP) purchased $620 million from the interbank foreign exchange market in November 2025, official data released by the SBP’s Domestic Markets & Monetary Management Department shows. The latest intervention reflects a moderation in foreign exchange inflows compared with previous months, highlighting shifts in market absorption needs and overall liquidity management.
SBP’s November purchase is significantly lower than the $1.033 billion bought in October 2025, suggesting that the central bank faced less pressure to stabilize the rupee amid reduced market volatility or slower external inflows. On a year-on-year basis, the November intervention also fell well below the $1.151 billion recorded in November 2024, indicating a broader easing in the pace of foreign exchange accumulation compared with the prior year.
During the first five months of fiscal year 2026, covering July to November 2025, SBP’s net purchases from the interbank market totaled $3.122 billion. The majority of these inflows were concentrated in September and October, when strong external receipts enabled the central bank to accumulate more than $2 billion over the two months. However, this pace slowed in November, reflecting the central bank’s calibrated approach to currency management amid evolving market conditions.
For context, during the same five-month period in fiscal year 2025, SBP had purchased $4.414 billion from the interbank market. The current figure represents a year-on-year decline of approximately $1.29 billion, suggesting that while foreign exchange inflows remain supportive, they have moderated from the exceptionally strong levels observed last year. Analysts view this as part of a gradual adjustment, aligning central bank interventions with market liquidity requirements and the broader currency management strategy.
SBP defines Net FX Intervention as outright and swap purchases of foreign exchange, minus outright and swap sales conducted with banks in the interbank market. This measure reflects the central bank’s active role in smoothing currency fluctuations, maintaining orderly market conditions, and supporting foreign reserves without overexposing the rupee to volatility.
Currency analysts note that the reduced intervention in November signals a more stable foreign exchange market, driven by a combination of steady inflows, improved trade receipts, and measured reserve management by SBP. While interventions remain an essential tool for monetary authorities, the decline compared with prior months suggests confidence in the resilience of the domestic foreign exchange market.
Looking ahead, SBP is expected to continue monitoring interbank liquidity conditions closely, balancing foreign exchange interventions with broader monetary policy objectives. The central bank’s strategy of selective intervention aims to protect the rupee’s stability while ensuring that foreign exchange reserves remain adequate to meet Pakistan’s import and external financing requirements.
Overall, the November 2025 data underscores a moderation in SBP’s FX market activity, reflecting both a normalisation of inflows after strong accumulation periods and the central bank’s adaptive approach to managing Pakistan’s currency and reserves. This measured pace is anticipated to support a more sustainable foreign exchange environment as the fiscal year progresses.
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