SBP reserves edge up $17m to $17.1b

Total FX holdings rise to $22.59b; gold falls Rs3,500 as global prices retreat

KARACHI:

Pakistan's total liquid foreign exchange reserves inched up to $22.59 billion in the week ended August 21, 2026, the State Bank of Pakistan (SBP) reported.

The reserves held by the central bank rose by $17 million to $17.10 billion while the net reserves with commercial banks increased to $5.49 billion. Total foreign currency deposits stood at $22,587.4 million, compared with $22,506.1 million a week earlier.

SBP's holdings have hovered near $17.1 billion through August after falling from $18.38 billion at the end of June on debt repayments.

Furthermore, the Pakistani rupee closed at 277.51 against the US dollar in the inter-bank market on Thursday, up Rs0.01 from Tuesday's finish at 277.52. Inter-bank trading was shut on Wednesday for Eid Milad-un-Nabi.

Globally, the dollar stayed near an eight-day high after US inflation and other data slightly raised bets on a Federal Reserve rate hike. Local dollar supply from remittances was enough to keep the rupee almost unchanged.

Meanwhile, gold fell Rs3,500 per tola in Pakistan after international prices retreated from a three-month high. Local dealers followed the overnight drop in New York, while silver moved the other way.

The All-Pakistan Gems and Jewellers Sarafa Association quoted 24-carat gold at Rs483,036 per tola, down Rs3,500. Ten-gram gold was at Rs414,125, down Rs3,001. Silver rose Rs50 to Rs7,329 per tola.

Sarafa markets were also closed on Wednesday. On Tuesday, gold had slipped Rs600 to Rs486,536 per tola.

Spot gold was last down 1.3% at $4,595.93 an ounce by 1:57 pm EDT, after touching its highest level since May 14 on Tuesday. US gold futures settled 0.9% lower at $4,653.30.

Prices extended losses after US inflation data, coupled with PCE readings, came broadly in line with forecasts. That firmed bets on a possible Federal Reserve rate increase next month. Traders were also waiting for Fed Chair Kevin Warsh's first major Jackson Hole speech on Friday.

Interactive Commodities Director Adnan Agar said gold was only slightly lower on the day. He put the session's low near $4,565-$4,607 and the high around $4,640. "It is slightly downward," he said. "There is important data coming this weekend. Tomorrow (Friday), the US is hosting the Jackson Hole conference for central bank governors. We may get some hint about future monetary policy for the US and globally."

US employment reports are due next week. Agar said the broader backdrop for gold remained supportive, pending those events. Iran and Oman were still working on an accord relating to the Strait of Hormuz, another factor markets had been watching for oil and safe-haven flows.