KARACHI: The Pakistani rupee ended flat against the US dollar in the interbank market on Friday.The rupee closed at 278.41 per dollar, almost unchanged from its close of 278.42 in the previous session.
The local currency also held steady in the open market. It ended at 279.47 against the dollar, unchanged from the previous close.The foreign exchange reserves held by the State Bank of Pakistan (SBP) rose by $43 million to $17.190 billion as of May 29. However, the country’s total liquid foreign reserves fell by $11 million to $22.636 billion. The reserves of commercial banks also dropped by $54 million to $5.445 billion.
The SBP reserves continue to improve despite ongoing geopolitical tensions amid conflict in the Middle East. The increase in reserves has occurred even with significant outflows, including $1.3 billion Eurobond repayments and $3.5 billion UAE deposits.
Recently, loan disbursements totalling $1.3 billion from the International Monetary Fund (IMF) under the Extended Fund Facility and the Resilience and Sustainability Facility have contributed to boosting these reserves. Additional support has come from inflows from Saudi Arabia and Pakistan’s return to international markets through Eurobonds and Panda bonds, reflecting improved external financing conditions and stronger reserve buffers.
