KARACHI: The State Bank of Pakistan (SBP) has decided to reduce the Special Cash Reserve Requirement from 15% to 10% of total FE-25 deposits effective from April 20, 2020.
According to a circular issued by the Central Bank, all conventional banks/DFIs will be required to maintain Cash Reserves in US$ equivalent of their total FE-25 deposits on daily basis with SBP in the following manner:
5 percent Cash Reserve Account (US$)
10 percent Special Cash Reserve Account (US$)
According to data available on SBP s website, total amount of FE-25 Deposits as of Mar 2020 were USD 7.492 Billion, a reduction of 5% would make USD 375 million available to financial institutions which would have a positive impact for the market.
