Money Market, Forex and General News - 31-07-2009
Saturday, August 1, 2009
MONEY MARKET
Money market opened at 11.75 percent. Overnight repo rates topped at 13.90 and closed at 13.25 percent. KIBOR for six month has inched upward in last few days to 11.99 after consistent decline.
FOREX
Inter bank opened at 83.25 & 83.30.Market touched level of 83.34 reflecting strong demand of US dollar. Market closed at 83.20 & 83.25.
The depreciating Pakistani rupee would be under further pressure shortly, since banks would be obliged to arrange foreign exchange for payments of diesel and other refined products from August 01st 2009 in addition to payment of furnace oil. These products constitute almost fifty percent of oil import bill i.e. around $4-5 billion annually. Therefore banks would arrange some $500 million each month which will surely infuriate demand for US dollar and deteriorate the local currency. Rupee has already hit barrier of “83” in the inter bank market.
GENERAL NEWS
IMF, the Washington based lender is considering an increase in loan package to Pakistan which was approved last November to the magnitude of USD 7.1 bn, almost USD 4 bn of which are already disbursed. The statement nevertheless, will have a positive sentiment on the local currency which has been under pressure in the recent times on account of discontinuation of foreign exchange being arranged by the State Bank for petroleum products imports.
Money market opened at 11.75 percent. Overnight repo rates topped at 13.90 and closed at 13.25 percent. KIBOR for six month has inched upward in last few days to 11.99 after consistent decline.
FOREX
Inter bank opened at 83.25 & 83.30.Market touched level of 83.34 reflecting strong demand of US dollar. Market closed at 83.20 & 83.25.
The depreciating Pakistani rupee would be under further pressure shortly, since banks would be obliged to arrange foreign exchange for payments of diesel and other refined products from August 01st 2009 in addition to payment of furnace oil. These products constitute almost fifty percent of oil import bill i.e. around $4-5 billion annually. Therefore banks would arrange some $500 million each month which will surely infuriate demand for US dollar and deteriorate the local currency. Rupee has already hit barrier of “83” in the inter bank market.
GENERAL NEWS
IMF, the Washington based lender is considering an increase in loan package to Pakistan which was approved last November to the magnitude of USD 7.1 bn, almost USD 4 bn of which are already disbursed. The statement nevertheless, will have a positive sentiment on the local currency which has been under pressure in the recent times on account of discontinuation of foreign exchange being arranged by the State Bank for petroleum products imports.
Source: NBP Treasury
Labels: Economy and Business, Pakistan Economy
posted @ 11:03 AM,
0 Comments:
Post a Comment