Money Market, Forex and General News
Wednesday, July 29, 2009
MONEY MARKET
The Central Bank will conduct a Treasury Bill auction tomorrow.The target amount is PkR.45 billion. There is a strong expectation of increase in the cut-off yields.
FOREX
Inter-bank opened at much higher level then yesterday at 82.80 & 82.90.Local currency was seen under immense strain as rupee breached psychological level of “83” and shot up to 83.24. Demand pressures seem to have deflated the rupee strongly against USD. Finally Rupee shed thirty five basis points to close at 83.15 & 83.25.
GENERAL NEWS
The MoC has announced the Trade Policy for FY09-12 with the objective to attain a sustainable economic growth through exports.Although, there are number of measures mentioned in the policy, the most significant one is the compensation provided to cement exporters in terms of inland freight (though the quantum is not known). On the textile front, value addition in cotton from USD 1,000 to USD1,500/bale till 2012 seems challenging due to the supply side issues at the local front along with the demand issues with major trade partners.
The government had paid Rs 66.00 bn to Oil Marketing Companies in FY09 for payment against subsidy on petroleum products (Petroleum Development Claims – PDC). The government loaded heavy PDC on diesel and gasoline in 1HFY09 after oil prices spiked towards US$147/bbl. However, softening of crude prices in 2HFY09 enabled the government to recover the subsidy through Petroleum Development Levy (PDL). Payment against PDC remained outstanding despite heavy taxes. Reportedly the government is still to pay PRs11bn to OMCs under PDC.
Source: NBP Treasury
The Central Bank will conduct a Treasury Bill auction tomorrow.The target amount is PkR.45 billion. There is a strong expectation of increase in the cut-off yields.
FOREX
Inter-bank opened at much higher level then yesterday at 82.80 & 82.90.Local currency was seen under immense strain as rupee breached psychological level of “83” and shot up to 83.24. Demand pressures seem to have deflated the rupee strongly against USD. Finally Rupee shed thirty five basis points to close at 83.15 & 83.25.
GENERAL NEWS
The MoC has announced the Trade Policy for FY09-12 with the objective to attain a sustainable economic growth through exports.Although, there are number of measures mentioned in the policy, the most significant one is the compensation provided to cement exporters in terms of inland freight (though the quantum is not known). On the textile front, value addition in cotton from USD 1,000 to USD1,500/bale till 2012 seems challenging due to the supply side issues at the local front along with the demand issues with major trade partners.
The government had paid Rs 66.00 bn to Oil Marketing Companies in FY09 for payment against subsidy on petroleum products (Petroleum Development Claims – PDC). The government loaded heavy PDC on diesel and gasoline in 1HFY09 after oil prices spiked towards US$147/bbl. However, softening of crude prices in 2HFY09 enabled the government to recover the subsidy through Petroleum Development Levy (PDL). Payment against PDC remained outstanding despite heavy taxes. Reportedly the government is still to pay PRs11bn to OMCs under PDC.
Source: NBP Treasury
Labels: Economy and Business, Pakistan Economy
posted @ 10:38 AM,
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