Foreign exchange reserves held by the State Bank of Pakistan (SBP) rose slightly during the week ended May 29, offering another sign of stability in the country’s external sector as the rupee continued to strengthen against the US dollar.
According to data released by the central bank on Thursday, SBP-held reserves increased by $43 million to $17.19 billion. A week earlier, the figure stood at $17.15 billion.
Pakistan’s total liquid foreign exchange reserves were recorded at $22.64 billion. Of this amount, commercial banks held $5.45 billion in net foreign reserves, while the remainder was maintained by the central bank.
The latest increase comes as Pakistan’s foreign exchange position remains considerably stronger than in previous years, helping support confidence in the local currency and easing pressure on external payments.
USD to PKR exchange rate
Meanwhile, the rupee posted another gain against the US dollar in the interbank market. The local currency appreciated by 2.86 paisa, with the dollar closing at Rs278.42 compared with Rs278.45 in the previous session.
During the day, the greenback traded between Rs278.40 and Rs278.45. In the open market, exchange companies quoted the dollar at Rs278.00 for buying and Rs279.50 for selling.
The rupee also improved against several major international currencies. It gained 28 paisa against the euro to close at Rs323.14 and strengthened by 85 paisa against the British pound, which settled at Rs373.80.
Further gains were recorded against the Swiss franc, Chinese yuan, Saudi riyal and UAE dirham, while the local currency also edged higher against the Japanese yen.
The latest advance has lifted the rupee’s performance for the current fiscal year, with the currency gaining Rs5.34, or 1.92 percent, against the US dollar. On a calendar-year basis, it has appreciated by Rs1.70, reflecting a gain of 0.61 percent.
The combination of rising reserves and a firmer rupee points to continued stability in Pakistan’s foreign exchange market.
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