Hear’s a breakdown of the key details from the provided text,categorized for clarity:
Foreign Exchange Reserves:
SBP Reserves: Increased by $23 million to $14.53 billion. This is the second consecutive weekly increase.
Commercial Bank Holdings: Decreased by $95 million to $5.43 billion.
Total Reserves: Not explicitly stated as a combined figure, but the SBP’s holdings are the primary focus.
Import Cover: Current foreign reserves provide over three months of import cover.
Composition of SBP Holdings:
Total SBP holdings: $14.5 billion.
Deposits from friendly countries: Approximately $9.4 billion.
Specific Country Contributions:
China: Rolled over $3.4 billion in commercial loans in June 2025, with $2.1 billion deposited directly with the SBP.
Saudi Arabia: Up to $2 billion.
UAE: Up to $1 billion.
Qatar: Around $3 billion (through deposits and direct investments).
Monetary Operations (Open Market Operations – OMOs):
Purpose: To inject liquidity into the banking system.
Total Injection: Rs902.5 billion.
Types of operations:
Shariah-compliant Mudarabah-based:
Accepted all three submitted quotes.
Rate band: 11.13% to 11.15% per annum.
Injection: Rs37.39 billion (realised value) against Rs37 billion (face value).
Rate of return: Fixed at 11.13%. Tenor: Eight days. Conventional Reverse Repo:
Received 13 quotes, accepted 11.
Accepted bids: Rs883.2 billion (face value), Rs865.13 billion (realised value).
Rate of return: 11.08% per annum.
Tenor: Eight days.
Pakistan Investment Bonds (PIBs) Auction:
Date: July 16.
amount Raised: Rs311.82 billion.
Target: Rs300 billion (surpassed).
Primary Driver: Five-year bonds.
Yields: Cut-off yields dropped considerably (19 to 54 basis points) across all tenors compared to June.
Reasons for Yield Drop: Strong market confidence and expectations of a policy rate cut due to easing inflation and improving macroeconomic indicators.
Steepest Yield Declines: two-year and five-year bonds.
No Bids: 15-year bond.
Market Sentiment: Growing anticipation of a policy rate cut.
Currency and Gold Prices:
Pakistani Rupee: Stable against the US dollar, closing at 284.97 (down by one paisa from 284.96). Gold Prices: Continued to slide, mirroring international market downturn.
Reason for International Downturn: Robust US economic data, leading to expectations of a cautious Federal Reserve regarding monetary easing.
Domestic Price Drop: Rs900 per tola.
Settlement Price: Rs355,100 per tola.
Gold Market Analysis:
$3,300 level acting as strong support.
Potential bearish trend if prices fall below $3,300.
resistance levels ahead: $3,350, $3,380, and $3,400.
