Islamabad, Apr 5, 2025: The State Bank of Pakistan (SBP) has executed Open Market Operations (OMO), injecting a significant sum of approximately Rs2.94 trillion into the banking sector. This operation involved two distinct transactions, both with a duration of seven days.
The major contribution of Rs2.4 trillion was provided through a conventional Reverse Repo Purchase operation, accepting all 22 bids at an annual rate of 12.07%.
Furthermore, SBP a Shariah-compliant Mudarabah-based OMO was conducted, accepting all 10 bids for Rs5.6 billion at an annual rate of 12.09%.
On Friday, the Pakistani rupee showed a modest increase against the US dollar, rising by 0.03% in the interbank market.
The currency closed at 280.47 at the end of the trading day, reflecting a gain of nine paisas from the previous closing of 280.56.
Globally, the US dollar faced challenges in regaining strength, while the Japanese yen, considered a safe-haven asset, remained close to a six-month peak on Friday.
This was a reaction to the market’s response to the economic repercussions of President Donald Trump’s newly imposed tariffs.
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Zafar Paracha, President of the Exchange Companies Association of Pakistan, highlighted that the rising corporate profits and repatriations by foreign banks and multinational companies are putting downward pressure on the Pakistani rupee.
Due to the unfortunate passing of a central member’s son, the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) refrained from releasing the gold prices in Pakistan.
Nevertheless, the gold market has been experiencing notable volatility.
Internationally, gold prices dropped nearly 2% on Friday as traders liquidated their bullion holdings following a broader market sell-off, triggered by China’s response to Trump’s tariffs.
Spot gold fell by 1.9%, reaching $3,053.98 an ounce after hitting an all-time high of $3,167.57 on Thursday. US gold futures dropped by 1.6%, settling at $3,072.10.
Analysts pointed out that investors were offloading gold to offset losses in other asset classes due to margin calls.
In Pakistan, the gold market witnessed a sharp price correction today, following several days of strong gains, as reported by Adnan Agar, Director at Interactive Commodities.
Agar stated that the price of gold reached a peak of $3,136 before declining to $3,026.
Currently, the market stands around $3,032. He attributed this fluctuation to global influences, particularly the effects of Trump’s trade tariffs.
In the past two days, significant selling pressure was evident in the market.
“The quicker it climbed, the quicker it’s likely to fall,” said Agar, noting that the market remains in a lowered position after the recent correction.
