SBP’S LATEST RESERVE ASSETS REPORT

As 2023 came to a close, the State Bank of Pakistan (SBP) unveiled its financial status report, painting a comprehensive picture of the country’s official reserve assets. As of December 31, 2023, these reserves stood at an impressive $13.67 billion, reflecting Pakistan’s financial resilience in a dynamic global economic landscape.

BREAKING DOWN THE RESERVE ASSETS

This significant reserve asset pool encompasses a variety of elements. The foreign currency reserves, a major component, reached $4.85 billion.

The reserves include an array of assets such as securities, currency holdings, and deposits, meticulously maintained with other national central banks and financial institutions both within and outside Pakistan.

GOLD RESERVES: THE PRECIOUS METAL

A notable highlight of the report is the gold reserves, encompassing both gold deposits and swapped gold, which stood at 2.079 million fine troy ounces.

Valued at $4.32 billion, this figure marked an increase from the previous month’s $4.23 billion, buoyed by a surge in the international spot gold price.

PAKISTAN’S FOREIGN CURRENCY ASSETS

The State Bank of Pakistan (SBP) report further detailed other foreign currency assets, totalling $97.48 million. These assets play a vital role in stabilising and diversifying Pakistan’s reserve portfolio.

THE SHORT-TERM LIABILITIES

On the flip side, Pakistan’s short-term foreign currency obligations, categorized as predetermined short-term net drains, were reported at $26.07 billion. The bulk of these outflows, amounting to $22.506 billion, comprised foreign currency loans, securities, and deposits.

The maturities of these obligations were diverse, with $3.25 million maturing in up to one month, $2.673 billion in one to three months, and $16.571 billion in three months to one year.

FORWARDS AND FUTURES: THE HEDGING DYNAMICS

The report also shed light on Pakistan’s positions in forwards and futures in foreign currencies against the domestic currency.

This included the forward leg of currency swaps, amounting to $3.421 billion. Notably, this figure comprised $3.634 billion in short positions, contrasted by $213 million in long positions.

CONTINGENT LIABILITIES AND COLLATERAL GUARANTEES

Additionally, the State Bank of Pakistan (SBP) outlined $34.39 million in collateral guarantees on debt due within a year and $1.108 billion in contingent liabilities in foreign currency, falling due in up to one month.

PAKISTAN ECONOMY

In sum, the State Bank of Pakistan’s report on the country’s official reserve assets as of the end of 2023 underscores the nation’s economic stability and strategic financial management.

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