SBP Sets New Financing Rate for Special Cash Reserve Account

The State Bank of Pakistan (SBP) Wednesday set a rate of remuneration on the Special Cash Reserve Account (US$), based on July’s CME 1-month Term Secured Overnight Financing Rate (SOFR), minus 1 percent service charges.

“On discontinuation of US Dollar LIBOR, it has been decided that from the month of August 2023, the rate of remuneration on Special Cash Reserve Account (US$) shall be calculated as CME 1-month Term Secured Overnight Financing Rate (SOFR) published on the last working day of the previous month minus 1% service charges,” said a circular issued by the central bank.

In a separate release, the central bank informed all authorized foreign exchange dealers that the rate of remuneration on the Special Cash Reserve Account (US$) maintained with the SBP will be set at 4.32 percent for the month of August 2023.

Source: Pro Pakistani