Foreign exchange reserves of the State Bank of Pakistan have been declining due to external debt servicing and no fresh inflow during the last two months.
The State Bank reported on Friday that reserves held by the bank declined by $89 million to $9.188 billion during the week ended on Aug 8 as against $ 9.277bn in the previous week. Total reserves of the country stood at $14.264bn. Net foreign reserves held by banks stood at $5.076bn.
The SBP reserves are expected to fall further as the bank paid about $147m to the International Monetary Fund (IMF) this week.
If no inflow is received by the Central Bank this week, reserves may fall below $9bn that may add volatility to the currency market which is already feeling the heat of political uncertainty.
During the week ending on Wednesday, the dollar rose to four-month high and crossed Rs100.
