The liquid foreign exchange reserves currently held by the country have increased by 5.62 percent over the previous month according to the stats issued by the State Bank of Pakistan (SBP). The current total liquid foreign exchange reserves are $20,085 million as compared to $19,015 million on 9 October 2020. Net reserves with the SBP were recorded to be $12,931 million which is the highest since February 2, 2018.
SBP reserves have increased to US$12.93 billion as of November 13, 2020, which is the highest level since February 2, 2018. Total liquid foreign reserves held by the country rose to US$20.08 billion. See details: https://t.co/WpSgomnd3v pic.twitter.com/ieaC7PTFSf
— SBP (@StateBank_Pak) November 19, 2020
The total reserves held by the country have increased 25 percent on an annual basis. They were only $16,003 million in November 2019 as compared to $20,085 million recorded on 13 November 2020.
These are the highest levels of foreign exchange reserves recorded on a yearly basis since 2016-17 when they were $21,402 million.
This a result of a huge inflow of worker’s remittances as well as the increase in overall corporate profitability in Pakistan. The Foreign Direct Investment (FDI) has also doubled during the first quarter of the Fiscal Year 2020-21. Many people are selling their dollar reserves at an increasingly lesser rate due to the gain of the rupee against the dollar.
Let’s hope the economy continues to grow and becomes stable in the coming years. What are your thoughts on the state of the economy?
Image Source: Dawn