Money Market, Forex and General News 30-07-09
Friday, July 31, 2009
MONEY MARKET
Money Market opened at 13 percent. Later on SBP conducted OMO and injected Rs 11 billion for two days in the market @ 12.63 percent. Money closed at 12 percent.
FOREX
Inter bank opened at 83.15 & 83.25.Rupee depreciated to 83.35 as demand pressures remained persistent in the market. Market closed at 83.20 & 83.25
GENERAL NEWS
SPI for the week ended 23 Jul-09 posted a surge of 3.3% MoM. Although MoM inflation remained in the positive zone mostly since FY01, the quantum of increase in recent period is concering. In terms of CPI, the dominant factor of higher base will persist till Dec- 09, however, factors including 1) electricity prices 2) int'l oil and other commodity prices and 3) expected price hikes in Ramadan season, have a considerable capacity to offset the base impact.
Govt. of Pakistan is planning to release PkR 20 bn in the first week of August to retire small portion of the circular debt in an effort to clear the entire circular debt by the end of calendar year 2009. The circular debt issue was severed as power companies build up huge payments for the fuel to oil & gas marketing companies which in turn has brought liquidity crunch to refineries and exploration companies threatening the continuity of fuel supply to power companies. In an another step, Pakistan Electric Power Company (Pepco) was also allowed to obtain loans from commercial banks to meet its financial obligations on account of power generation in order to ease off some pressure.
Money Market opened at 13 percent. Later on SBP conducted OMO and injected Rs 11 billion for two days in the market @ 12.63 percent. Money closed at 12 percent.
FOREX
Inter bank opened at 83.15 & 83.25.Rupee depreciated to 83.35 as demand pressures remained persistent in the market. Market closed at 83.20 & 83.25
GENERAL NEWS
SPI for the week ended 23 Jul-09 posted a surge of 3.3% MoM. Although MoM inflation remained in the positive zone mostly since FY01, the quantum of increase in recent period is concering. In terms of CPI, the dominant factor of higher base will persist till Dec- 09, however, factors including 1) electricity prices 2) int'l oil and other commodity prices and 3) expected price hikes in Ramadan season, have a considerable capacity to offset the base impact.
Govt. of Pakistan is planning to release PkR 20 bn in the first week of August to retire small portion of the circular debt in an effort to clear the entire circular debt by the end of calendar year 2009. The circular debt issue was severed as power companies build up huge payments for the fuel to oil & gas marketing companies which in turn has brought liquidity crunch to refineries and exploration companies threatening the continuity of fuel supply to power companies. In an another step, Pakistan Electric Power Company (Pepco) was also allowed to obtain loans from commercial banks to meet its financial obligations on account of power generation in order to ease off some pressure.
Source: NBP Treasury
Labels: Economy and Business, Pakistan Economy
posted @ 12:47 PM,
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