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Money Market, Forex and General News 05-06-09
Saturday, June 6, 2009

MONEY MARKET

Money market opened at 12.50%.Market topped at 12.75% but later on liquidity drove the market dOwn to just 3% and market closed at the same level as well.

FOREX

The USD / PkR opened at levels of 80.70/75 and went as high as 80.85 and closed at 80.80 / 85.

GENERAL NEWS

The State Bank of Pakistan has alarmed that excessive borrowings of the government from the commercial banks may deprive the private sector of easy access to liquidity.
The anticipated weaker performance of revenues, and increase in expenditures both point to the risk of slippage in the fiscal deficit target, and a contingent increase in financing requirements. Moreover, the private sector credit growth continued to show deceleration as it recorded net retirement of Rs127.1 billion in January-March FY09 compared with net lending of Rs203.1 billion in first half of FY09.
The central bank said the domestic liquidity condition, as a result of slowdown in domestic credit requirements by the government and private sector and sharp fall in pace of depletion of NFA (Net Foreign Asset) of the banking system have continued, so far, remained relatively easy.
The overall deposits mobilization by banks remained weak during the July-March FY09 as overall deposits of the banking system witnessed a contraction of 0.6 per cent on cumulative basis.
Trade deficit recorded a break from rising trend of the past six years, declining by 15.9 per cent during July-April FY09. This was principally led by a 9.8 per cent fall in imports that more than offset a small three per cent fall in exports during this period.
A larger share of the improvement in trade deficit was observed during January-April FY09; due to a sharp 35.1 per cent fall in imports that outpaced a yet large 19.2 per cent fall in exports in this period.

Labels: Economy and Business, Pakistan Economy