SBP maintains remuneration rate on Special Cash Reserve Account for October

Mettis Global reported that the State Bank of Pakistan has nudged up the remuneration rate on its Special Cash Reserve Account (US$) to 2.91 per cent for October 2026. The new figure is slightly above the 2.71 per cent applied in September 2026 and the 2.66 per cent set for August 2026. The rate covers deposits raised under FE-Circular 25 of 1998, as set out in the SBP's latest circular.

Banks and non-bank financial institutions must hold reserves equal to 25 per cent of their FE-25 deposits with the central bank. That total splits into 5 per cent in a Cash Reserve Account, which earns nothing, and 20 per cent in the Special Cash Reserve Account, which is paid a monthly return. The monthly return is calculated from the CME 1-month Term SOFR, taken from the last working day of the prior month, less a 1 per cent service charge.

The adjustment is part of the central bank's continuing mechanism for matching returns on foreign currency reserves to global reference rates. Because the figure is reset each month, the rate for October reflects the benchmark as it stood at the end of September.