The State Bank of Pakistan (SBP) has announced that the remuneration rate for the Special Cash Reserve Account (SCRA) in U.S. dollars will remain unchanged at 3.27% for October 2025. The central bank confirmed that this decision follows careful monitoring of economic conditions and monetary policy objectives, aiming to maintain stability in foreign currency liquidity while supporting the broader financial system.
This rate applies to deposits raised under FE-Circular 25 of 1998 and represents the return paid by SBP on U.S. dollar-denominated reserves held with the central bank. The SCRA, which operates as a specialized cash reserve facility, is remunerated on a daily product basis, with the rate notified at the end of each month. By keeping the rate steady, the SBP signals a continued cautious approach toward balancing liquidity management and market stability.
Analysts note that maintaining the SCRA rate at 3.27% reflects the central bank’s assessment that current global and domestic economic conditions do not necessitate an upward or downward adjustment. The decision aligns with broader efforts to ensure that foreign currency reserves remain stable while providing predictable returns to participating banks.
The SCRA serves as a key instrument for banks to park their U.S. dollar holdings with the State Bank, offering both a secure avenue for reserve management and a consistent interest income. By providing remuneration on these deposits, SBP encourages banks to maintain adequate foreign currency liquidity, which in turn supports exchange rate stability and confidence in the financial system.
Over the past several months, the central bank has maintained a steady approach toward SCRA rates, reflecting ongoing monitoring of external account flows, foreign reserves, and domestic liquidity conditions. The unchanged rate for October 2025 is expected to support continued predictability for banks participating in the program, ensuring that financial institutions can plan their foreign currency operations without disruption.
Experts suggest that the SCRA plays a crucial role in the broader financial ecosystem by helping banks manage short-term foreign currency surpluses efficiently. The facility also contributes indirectly to the management of the national foreign exchange reserves, while minimizing volatility in money markets. By remunerating deposits in U.S. dollars, the SBP aligns the returns with prevailing economic conditions, offering a stable incentive to maintain funds in the central bank rather than in other less regulated instruments.
As Pakistan continues to navigate complex domestic and international financial dynamics, maintaining the SCRA rate at 3.27% underscores SBP’s strategic focus on stability and prudent monetary management. Market participants are expected to respond positively to the clarity provided by the central bank, enabling smoother operational planning and stronger confidence in the financial system.
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