SBP reserves edge up $11 million to $21.57 billion

SBP reserves gained $11 million during the week to 6 November and reached $21.57 billion, the central bank’s Thursday data showed.

The weekly gain was small. However, it marked the fourth rise in a row for the central bank’s own holdings.

What the SBP reserves figures show for November

The central bank held $21.57 billion at the start of November. Its own data put the exact figure at about $21,573 million.

Counting commercial banks too, the country’s liquid reserves came to $26.84 billion. A week earlier they had been $26.86 billion.

Commercial banks held net reserves of about $5.27 billion. As a result, the dip in the overall total came from the banking system, not from the central bank.

A brokerage house estimated that the reserves now cover 3.03 months of imports. That figure is one brokerage’s estimate.

A year of gains

Reserves have climbed steadily over the past twelve months. Total liquid reserves rose by about $7.70 billion, from $19.14 billion a year ago to $26.84 billion now. That is a gain of roughly 40 percent.

September brought the biggest jump. The central bank’s holdings leapt from about $17.15 billion in August to nearly $21.51 billion, a rise of about $4.36 billion in one month.

Reserves then edged up in October. By the last week of the month, the bank’s holdings had added $39 million and reached $21.56 billion.

Targets for the SBP reserves

The State Bank of Pakistan forecasts $23 billion in its vaults by December 2026. Its goal for June 2027 is $25 billion.

Pakistan has now seen reserves climb in each of the last four weeks. These weekly numbers matter, since they show how well the country can meet its external payments. Hitting those marks would need steady inflows over the coming months, because the weekly gains so far have been small. Also, a stronger buffer helps the country meet its external payments with less stress.

Rupee steady and gold slipping

The rupee barely moved on Thursday. In the inter-bank market it gained Rs0.01 against the US dollar and ended at Rs276.61. Wednesday’s close had been Rs276.62.

Meanwhile, gold prices in Pakistan fell for a third session in a row. The price per tola dropped Rs10,900 to Rs416,536 on Thursday, and the 10-gram rate lost Rs9,345 to reach Rs357,112. Over the three sessions, the tola price shed Rs15,800 in all. A global sell-off dragged bullion to its weakest point in over a year, because pricier oil renewed inflation fears.

In the global market, spot gold fell 3 percent to $3,867.96 an ounce. In addition, a firmer US dollar and fading hopes of a Middle East peace deal weighed on the metal. Trump’s remark that the US had no need for an Iran deal deepened the unease. The dollar held near a 19-month high, which made gold costlier for foreign buyers.

For now, the SBP reserves keep their slow upward trend. Next week’s data will show whether the SBP reserves can post a fifth straight weekly gain.