Foreign currency reserves rise $31m to $12.08b

Pakistan's forex reserves rise to $12.08B; gold prices fall amid US policy impact and rupee dips slightly.

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KARACHI:

The foreign exchange reserves, held by the State Bank of Pakistan, rose $31 million to $12.08 billion in the week ended December 13, 2024, according to data released by the central bank on Thursday.

With the fresh increase, Pakistan's total liquid foreign currency reserves reached $16.63 billion, reflecting the country's improving financial position that provided around three months of import cover. Out of the total deposits, commercial banks held reserves of $4.55 billion.

In the precious metals market, gold prices fell, mirroring the decline in international markets. The price of bullion per tola dropped Rs2,600 and settled at Rs273,300, according to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).

The drop followed a rise in gold prices on Wednesday, when the per-tola rate increased Rs1,000. On the international front, bullion prices also slid on Thursday. The APGJSA reported the global rate at $2,621 per ounce (including a $20 premium), reflecting a loss of $26 during the day.

Interactive Commodities Director Adnan Agar attributed the decline to a hawkish US monetary policy, which impacted the gold market. "Gold momentum has broken and prices have dropped nearly $70 from $2,680 per ounce," he stated. Agar added that the metal could further decline to $2,550, though it remained within a narrow range. Meanwhile, the Pakistani rupee recorded a slight decline of 0.04% against the US dollar in the inter-bank market.

By the close of trading, the currency settled at Rs278.35, registering a loss of 12 paisa against the greenback. On the previous day, the rupee had closed at 278.23, according to the State Bank of Pakistan. Pakistan Forex Association President Malik Bostan attributed the rupee's depreciation to a "bloodbath" at the Pakistan Stock Exchange. The stock market saw heavy profit-taking ahead of year-end payment settlements by banks and other institutions.