Money Market, Forex and General Upadtes - 13-06-2011

Money Market Updates

Money market opened at 12.25/11.75 with a high of 12.50 and low of 11.30. Market closed at 12.25. State Bank conducted an open market operation today with a mop up of Rs.34.5 billion from the participation of Rs.40 billion for 3 days at the rate of 12.04.

Forex Updates

U.S. crude oil settled at $99.29 a barrel, down $2.64, after earlier falling to a session low at $98.60. Brent crude settled 79 cents lower at $118.78 a barrel, having risen to $120.07 earlier, the highest since May 5. Dollar Market interbank opened at 85.75/80 with a high of 85.78 and a low of 85.68. Market closed at 85.67/69

General Updates

To reduce dependence on International Financial Institutions (IFIs), the government has decided to float foreign sovereign bonds of $1.5 billion during the next three years under its medium term budgetary framework. the priorities fixed for the next three fiscal years 2011-14 with the fiscal deficit would be bridged through non-bank borrowing. For meeting the requirements $ 500 million foreign sovereign bonds would be floated each year during the next three fiscals. Similarly, rupee denominated sovereign bonds of estimated Rs95 billion would be floated during the next three fiscal years. The investment target for National Savings Schemes has been set at Rs151 billion, Rs170 billion, Rs190 billion respectively for the next three
fiscal years as compared to Rs248 billion target for the current fiscal year. Pakistan is likely to achieve record exports of around $25 billion at the conclusion of the current fiscal year. Though the major contributor in this endeavor has been the textile sector given escalating prices in the international market, other sectors have also made noteworthy contributions to the historical figure. With an increase of almost 28.2 per cent during July 2010 to May 2011, Pakistan’s export value has jumped to over $24 billion against the $17.509 billion export figure recorded during the corresponding period last year.