The State Bank of Pakistan's (SBP) foreign exchange reserves increased by $33 million during the week ended July 17, reaching $17,258.6 million, the central bank said on Thursday. Pakistan's total liquid foreign reserves, however, declined by $5.9 million to $22,669.6 million. Net foreign reserves held by commercial banks fell $38.7 million to $5,411 million, more than offsetting the rise in the central bank's holdings, according to Arif Habib Limited.
The country's reserves provide import cover for 2.54 months. Data breakdown released by the State Bank confirmed that SBP's reserves stood at $17.3 billion and commercial banks' reserves hit $5.4 billion, taking overall deposits to $22.7 billion as of July 17. It is pertinent to mention that Bangladesh's gross foreign exchange reserves rose to $36.10 billion on Wednesday, crossing the $36 billion mark for the first time since October 2022, a central bank official said.
The increase was supported by a $320 million disbursement from a bilateral aid agency, according to the Bangladesh Bank data. Furthermore, the Pakistani rupee closed at 277.90 on Thursday, up Rs0.01 from Wednesday's close at 277.91, while the US dollar largely stabilised globally amid renewed US-Iran tensions. The dollar index eased 0.06% to 101.05.
Meanwhile, gold prices in Pakistan declined on Thursday, tracking a sharp retreat in the international market, where the yellow metal fell more than 2% from the two-week high touched in the previous session. Locally, the price of gold per tola dropped Rs1,800 to Rs432,036, while 10-gram gold was quoted at Rs370,401 after a decline of Rs1,543, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association. Silver also weakened in the local market, falling by Rs33 to Rs6,370 per tola.
A day earlier, gold had surged by Rs4,600 to Rs433,836 per tola. On the global front, spot gold was down 2% at $4,047.26 per ounce by 11:51 am EDT (1551 GMT), after hitting its highest level since July 7 on Wednesday, as per Reuters. US gold futures for August delivery slid 2.5% to $4,050.
The sell-off came as the intensifying Middle East conflict pushed energy prices higher, stoking inflation concerns and reinforcing expectations of further rate hikes by the US Federal Reserve. Brent crude oil climbed to $100 a barrel, while Houthi attacks on Saudi tankers in the Red Sea added to supply disruption…
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