Pakistan’s foreign reserves reach US$18.86 bn

KARACHI: The State Bank of Pakistan (SBP) on Thursday announced that the total liquid foreign reserves of the country have jumped upto US$18.86 billion during the week ending on February 28, ARY NEWS reported.

In a statement issued on Thursday from the central bank, out of the total reserves, the state-owned bank hold the foreign reserves of upto US$12.75 billion, witnessing an increase by US$166 million from the past week.

It further said that the commercial banks also hold reserves of upto US$6.11 billion.

The State Bank of Pakistan (SBP) witnessed an increase of US$87 million in its foreign reserves during the week ending Feb 21.

According to the central bank, the net liquid foreign reserves

held by the country stood at $18.74 billion.

Of the total, foreign reserves held by the State Bank of Pakistan were recorded at $12.59 billion, while those held by commercial banks decreased by $91 million to $6.15 billion.

It is pertinent to mention here that global watchdog Financial Action Task Force (FATF) had said that Pakistan would remain on the grey list, and asked the country to implement the agreed-upon action plan until June.

Read More: Pakistan’s continued inclusion in FATF grey list negative for banks: Moody’s

“The announcement is credit negative for Pakistani banks because it raises questions about potential additional restrictions relating to banks’ foreign-currency clearing services, as well as their foreign operations,” Moody’s said, adding that increased compliance costs would also hamper banks’ profitability.

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