According to a circular, the State Bank of Pakistan (SBP) increased the rate of return on special cash reserves from zero to 0.12 percent in order to mobilize dollar deposits in the banking system.
According to a circular issued by the State Bank of Pakistan, “The rate of remuneration for the month of June 2022 on Special Cash Reserve Account (US$) maintained with the State Bank of Pakistan will be 0.12 percent.”
The rise in interest rates will attract dollar deposits at banks.
Foreign exchange reserves held by other banks peaked at $7.133 billion in May 2021. Since then, there has been a continuous outflow as there was a lure in keeping dollar deposits at other banks.
Commercial banks currently hold $6.033 billion in foreign exchange reserves.
To read our blog on “SBP makes it more difficult to buy cars using bank financing,” click here.
