Money Market, Forex and General News 03-06-09
Thursday, June 4, 2009
MONEY MARKET
State Bank of Pakistan (SBP) conducted a T-Bill auction today with the settlement date on June 4, 2009. There is a maturity of Rs. 44 billion from the previuos auction. The tenors offered are 3, 6 &12 months. The maturity dates for 3, 6 & 12 month T-Bills are August 27 ' 09, Dec 03 ' 09 & June 03 ' 10 respectively.
FOREX
The persistant trend of volatility in the interbank persisted.The USD / PkR opened at levels of 81.05/10 and went as high as 81.05 and closed at 80.75 & 80.80.
GENERAL NEWS
- 1Q CY09 reflected the broad based economic strains on the banking system with Asset Growth flat at just 1.6% over Dec08 for the 40 banks in the industry. Advances shrunk by nearly 6% over the previous quarter, indicating the risk-aversion of the banking system
in a high interest rate, high default risk environment. Meanwhile Investments rose at a much faster pace of 20% over Dec08 with Bank’s re-allocating assets towards risk-free government securities. - Coming off an extremely difficult 2008 for the economy, YoY economic indicators showed an improvement in April 2009. However, MoM numbers suggest signs of some pent up pressure.
- Inflation (based on all three indices), trade and current account deficits showed YoY improvement but increased MoM. Remittances while still fairly strong YoY, were lower MoM. From an administrative perspective 1) Supreme Court's directive to lower
retail oil prices and 2) delays in firming up budget targets which led to IMF's next tranche being delayed from June to July, raised a few concerns. On the positive front however the 61bp decline in 10-yr PIBs reinforced views of a potential cut in discount rate in coming
months.
Labels: Economy and Business, Pakistan Economy
posted @ 9:28 AM,
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