Financial Risk Manager

Ways of Financial and Risk Management

MONEY MARKET

Money market opened at the band of 12.75/13.0 percent. Overnight repo rates topped at 12.90 percent but calmed down later on and closed at 12.0 percent. Market is operating smoothly and no such “panic situation” has been witnessed in last few weeks.
Interest rates falling downward and pressure on KIBOR is evident of the above fact since six month benchmark rate has fallen from13.76 percent on June 1st 2009 to 12.87 percent as on today.

FOREX

Inter bank opened at 81.25 & 81.30. Even demand and supply of USD restrained the market from any irregular deviation. Rupee weakened to 81.35 but at the end of the day lost only two basis points at bid to close at 81.27 & 81.30.

GENERAL NEWS

The on going power crisis have forced the government to adopt serious rescue measures to sustain the deteriorating sector.
In addition to resolve the circular debt issue by issuing TFCs of power companies, government has decided to bail out the energy sector by floating paper guarantees worth Rs24 billion.
The funds would first be injected into Pepco, followed by other concerns down the supply chain. Pepco will pay to the producers of electricity, who will keep their cuts and then pay money to suppliers of furnace oil.
At the end of the chain are oil and gas producers The main beneficiary of the exercise would be the state-owned oil marketing company, Pakistan State Oil which had recently sent an SOS to the government that it might default on its LCs due to liquidity problem

Source: NBP Treasury