Money Market, Forex and General News - 06-08-2009
Friday, August 7, 2009
MONEY MARKET
The market was short of liquidity today with majority of the overnight deals in the band of 13.50% p.a.
FOREX
The USD/PkR parity inched upwards as inflows outpaced outflows from the interbank. The parity strengthened by approximately 50 bps to close at 82.68/72. Yesterday's closing parity was 83.20/25.
GENERAL NEWS
In the upcoming Monetary Policy on August 15, 2009, State Bank of Pakistan (SBP) is expected to introduce a new policy rate structure. The new structure would end the single policy rate regime in favor of repo and reverse repo rates. The Policy rate would be for borrowing from SBP by banks while on reverse repo rate banks would supposed to lend to SBP. It would not only improve the liquidity management of banking system but also lower the fluctuation of the interbank market. The differential between the Repo rate and the reverse repo is likely to be of 200-250 basis points.
All eyes on the IMF review tomorrow as outcome may drive the next MPS and fiscal stance thereafter. The sentiments are expected to be dominated by the expectations of better corporate results and policy rate cut.
Source: NBP Treasury
The market was short of liquidity today with majority of the overnight deals in the band of 13.50% p.a.
FOREX
The USD/PkR parity inched upwards as inflows outpaced outflows from the interbank. The parity strengthened by approximately 50 bps to close at 82.68/72. Yesterday's closing parity was 83.20/25.
GENERAL NEWS
In the upcoming Monetary Policy on August 15, 2009, State Bank of Pakistan (SBP) is expected to introduce a new policy rate structure. The new structure would end the single policy rate regime in favor of repo and reverse repo rates. The Policy rate would be for borrowing from SBP by banks while on reverse repo rate banks would supposed to lend to SBP. It would not only improve the liquidity management of banking system but also lower the fluctuation of the interbank market. The differential between the Repo rate and the reverse repo is likely to be of 200-250 basis points.
All eyes on the IMF review tomorrow as outcome may drive the next MPS and fiscal stance thereafter. The sentiments are expected to be dominated by the expectations of better corporate results and policy rate cut.
Source: NBP Treasury
Labels: Economy and Business, Pakistan Economy
posted @ 12:40 PM,
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