According to the Financial Stability Review released last week, the banking sector maintained a considerable amount of foreign currency funds with financial institutions abroad for the prudential liquidity risk management.

It said that the banking sector significantly improved their balances with financial institutions abroad from 2021 to meet their liquidity needs in foreign currency, in an environment where a foreign exchange liquidity deficit was prevailing in the domestic forex market.

Therefore, at the end Q2 of 2024, the banking sector maintained a balance of $ 3.7 billion with financial institutions abroad with a growth of 8.7% year-on-year.