The Special Cash Reserve Account (US$) rate of compensation was set by the State Bank of Pakistan (SBP) on Wednesday. It is based on the CME’s 1-month Term Secured Overnight Financing Rate (SOFR) for July, minus 1% service fees.
The rate of compensation on Special Cash Reserve Accounts (US$) will 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), according to a circular issued by the central bank. This decision follows the discontinuation of US Dollar LIBOR.
The rate of compensation on the Special Cash Reserve Account (US$) kept with the SBP will be fixed at 4.32 percent for the month of August 2023, according to a separate announcement from the central bank that went out to all authorized foreign currency dealers.