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       KARACHI: The State Bank of Pakistan (SBP) foreign exchange reserves increased by $46 million during the week ended on Jan 31 after witnessing a decline in the two preceding weeks.

       This latest increase pushed the SBP forex holdings to $11.42 billion. The State Bank regularly buys dollars from the interbank market. However, the SBP did not mention the sources of the inflows that helped the reserves increase during the week.

       The SBP has enough time to build its reserves up to $13bn before the end of FY25. The higher inflows of remittances have further strengthened the hope for achieving the target.

       The most significant benefit of higher reserves resulted in the exchange rate stability, further attracting dollars as the exporters found it easy to sell their proceeds in a relatively cool and calm market. The country’s total foreign exchange reserves stood at $16.04bn, including $4.62bn held by commercial banks.

       Published in Dawn, February 7th, 2025