SBP Rebuilds Reserves with $12.4 Billion Market Buys Since Mid-2024.
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SBP $12.4 billion forex buys
The State Bank of Pakistan (SBP) has successfully transitioned into a “net buying” mode, acquiring a substantial $12.4 billion from the inter-bank foreign exchange market since mid-2024. This aggressive buffer-building strategy marks a significant shift from previous years of reserve depletion, aimed at strengthening the country’s balance of payments.
Strategic Reserve Building
The central bank’s approach focus on opportunistic buying to ensure long-term economic resilience:
- War Chest Recovery: The $12.4 billion acquisition allows Pakistan to rebuild its financial “war chest” amidst global economic uncertainty.
- Currency Management: This strategy has enabled the SBP to increase reserves without triggering a sharp or destabilizing appreciation of the Pakistani Rupee.
- Market Stability: By acting as a net buyer, the SBP provides a predictable floor for the exchange market, despite high global oil prices and regional volatility.
