Money Market, Forex and General Updates - 21-07-2010
Thursday, July 22, 2010
Money Market:
State Bank is conducting a PIB auction today as scheduled. When issued rates of the auction for three years PIB closed at 12.85%, five year PIB closed at 12.98%, seven year PIB at 13.05%, ten year PIB at 13.10%,
fifteen year PIB at 13.25% and twenty years PIB at 13.40%.
In the current auction the starting bids made by the banks for 3, 5, 7, 10, 15 and 20 year PIB are 12.8534%, 12.9477%, 13.0708%, 13.0001%, 13.2414%, 13.3493% and 13.5996% respectively. The total target for the auction is Rs.20 billion and the total participation is of Rs.18.122 billion, in which 3, 5, 7 and 10 year PIB are of latest issues and 15 and 20 year PIB are of previous issue.
General Updates:
The Monetary Policy is expected to be announced on July 30th in which the expectation of any rate cut on account of sustained inflation which persists due to removal of subsidies on power sector.
IMF is concerned with the initiatives taken by Government of Pakistan (GOP) as slippages on fiscal deficit for the fourth quarter. IMF has advised the GOP has to accelerate growth while keeping inflation in check. But the elimination of subsidies from power sector will be passed on to the end users thus, fuelling inflation. The depreciation of currency and rising commodity prices also poses a threat of jacking up inflation.
Textile sector, the major export contributor of Pakistan’s overall exports has made Pakistan achieve its export target of US$19.38bn. Out of the total exports, 53% has been contributed by textile exports in FY10 where massive export of cotton and yarn supplemented the textile sector to achieve the export target.
Labels: Money, Pakistan Economy
posted @ 11:49 AM,
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