The State Bank of Pakistan will continue to build its dollar stockpile but at a slower pace without putting undue pressure on the rupee, according to Citigroup Inc.
“Although reserves have improved from the lows of early 2023, we still continue to welcome the central bank’s reserve building as external buffers remain low,” Katie Kironde, emerging markets economist and macro strategist at Citi, wrote in a note. The central bank eased its reserve building strategy this week and this helped liquidity improve in the interbank market, she added.