KARACHI: The rupee posted moderate gains against the dollar during the outgoing week, but the traders said they expected the rupee to be range-bound after the currency market opened on May 17,.
Weekly Currency update: Pakistani rupee may trade range-bound after Eid
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Dealers expect the Pakistani rupee to trade range-bound ahead of Eid-ul-Fitr.
Traders note the value of the currency depends on the level of demand for the dollars from importers and inflows’ position.
The advent of Ramadan and Eid increased the inflows of remittances from overseas Pakistanis, helping bolster the domestic currency.
KARACHI: Dealers expect the Pakistani rupee to trade range-bound ahead of Eid-ul-Fitr although the currency posted moderate gains against the dollar during the outgoing week,
Traders noted that the value of the currency depends on the level of demand for the dollars from importers and the position of the inflows’.
The non-performing loans (NPLs) of all banks significantly increased by Rs22 billion in the first quarter of the calendar year 2021 to Rs866bn. AFP/File
KARACHI: The non-performing loans (NPLs) of all banks significantly increased by Rs22 billion in the first quarter of the calendar year 2021 to Rs866bn, while the recovery remained less than half of the preceding quarter (October-December 2020).
Increased NPLs are a sign of poor banking particularly when the role of the private sector is limited in the banks’ money.
The State Bank’s latest quarterly data issued on Friday showed that despite drastic reduction in the private sector lending in FY20, banks defaults have been increasing while the size of the default amount also increased significantly.
Salman Khan
KARACHI: The most attractive long-term domestic papers Pakistan Investment Bonds (PIBs) witnessed another significant cut up to 65 basis points in the auction held on Thursday.
The auction was held for fixed rate PIBs. The government, which has been raising maximum liquidity from banks, slashed cut-off yields on all PIBs for all tenors.
The details issued by the State Bank of Pakistan (SBP) showed that the highest cut was for the five-year PIBs as the rate fell to 9.2 per cent from 9.85pc in the previous auction a cut of 65bps. The government raised Rs68.8 billion for this tenor.
The shortest tenor for the fixed rate PIBs was three-years, with the cut-off yield slashed by 57 bps to 8.7pc. The government raised Rs75.5bn for this period.
Salman Khan
KARACHI: The government again slashed the cut-off yields on treasury bills (T-bills) while it raised Rs617.8 billion in an auction on Wednesday.
The cut-off yield on the benchmark six-month T-bills was slashed by14 basis points to raise Rs299.4bn. In the last auction held on April 21 the rate was slashed by 11bps.
The bidding trend showed presence of huge liquidity but little opportunity for banks to invest the money. Earlier report of the State Bank showed that deposits of banks have been increasing mainly on account of less consumption due to several reasons related with coronavirus.
The government received total bids of Rs1,618bn for the auction of T-bills while it accepted Rs617.8bn, including Rs61.2bn raised through non-competitive bids.