SBP rebuffed rumors that reserves have dried up
The State Bank of Pakistan has clarified that its foreign exchange reserves have not dried up and rebuffed such reports in the media.
“SBP has noticed certain rumors implying that SBP Reserves have dried up or are not usable, that SBP has stopped import payments, and that banks have run out of US dollars” the central bank said on Twitter.
Pakistan’s central bank explained that as of June 10, 2022, SBP liquid foreign reserves stood at $8.99 billion, and “these do not include gold reserves and are fully usable for all purposes.”
The statement from the central bank comes amid reports of its reserves falling to a dangerously low level along with the suspension of import payments. Media reports suggested that the currency market was gripped by uncertainty and speculations rifed up about banks stopping opening letters of credit (LCs).
However, the central bank said that it had not stopped import payments and that commercial banks had sufficient dollar liquidity to execute those payments. “Indeed, import payments of around US$ 4.7 billion have been executed through the interbank market during the month so far.”