Financial Risk Manager

Ways of Financial and Risk Management

Money Market:

Money market opened at 10.5 percent. Overnight repo rates topped at 13 percent while bottom was 9.70 percent. Market closed at 13 percent.

Forex:

Inter bank market opened at 79.85 & 79.95 but rupee shortly shot up over “80” due to buying pressures.
Market topped at 80.12 while went as low as 79.90.
Rupee got devalued against US dollar and closed at 80.10 & 80.15 at the end of the day, losing twenty five basis points at bid and twenty points at offer side.

General News:

IMF has agreed to release second tranche of $840 million to Pakistan in addition to setting new targets for FY 09-10. Country would be required to maintain a GDP growth rate at 4 percent, Fiscal Deficit 3 percent and inflation at 6 percent in next fiscal year.
Country’s budget deficit in first six months of FY-09 has surpassed Rs 250 billion spot.
Total revenues of Federal and provincial governments stood at Rs 834.47 billion while Expenditures ran over trillion to Rs 1.085 trillion.
The rising deficit has been quite a nuisance for the government and is determined to cut development expenditures to bring the deficit down.
United States’ insurance giant American International Group (AIG) has posted a quarterly loss of over $60 billion and would immediately need $30 billion in fresh capital from US treasury.
The group was bailed out last year and got commitment of $150 billionfrom U.S government, which made government a major shareholder of 80 percent in the group.